Goodwill constructions LLC is considering allocating a limited amount of capital investment funds among three proposals. The amount of proposed investment, and net cash flow for each proposal are as follows: 1. Proposed Investment OMR 35000 7 2. Each Proposal has expected life of 8 years. 3. The cost of capital is 152 % (Present Value table attached) Net cash flow during the expected life of the Proposals is given below. Year 1 2 3 4 5 OMR8000 12000 16000 18000 20000 Proposal A Proposal B Proposal OMR22000 20000 18000 15000 110000 OMR 18000 19000 13000 9500 14000 Note: 1. Net Cash inflow must be different for every year. Required: Which Proposal is preferable on the basis of the following capital budgeting evaluation methods? And Why? 1) Payback Period 11) Net Present Value The following are the present value factors O Discount 2 3 4 5 factor/year 10% 0.909 0.826 0.751 0.683 0.621 11% 0.901 0.812 0.731 0.659 0.593 12% 0.893 0.797 0.712 0.636 0.567 13% 0.885 0.783 0.693 0.613 0.543 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497