find:

A)payback periods

B)Accounting rates of return

C)Net present values

Seminar Question on Projeet Appraisal Omar Limited is considering an investment into its computerised supply chain with a view to generating eash saving from the benefits of currently available technology. Two options are under consideration. Option I will cost SAR200,000 and operates for five years, while Option2 will cost SAR245,000 and remain operational for seven years. Given the longer implementation period, Option2 will not realize any eash savings until the end of year 2. Neither investment will have any resale value at the end of its life. Due to the scarcity of investment capital, Omar Limited can only undertake one of the supply chain projects. The directors of the company are asking for your help in evaluating the two proposals. The cash flows from any new investment in the years of operation are expected to be as follows: Omar Limited has a cost of capital of 15% For your internal rate of return calculations, you should discount the two projects using a 19% discount rate