Hello

first of all thank you so much. could you please explain step by step. i really need to undeatand this question. I will have exam in few days and I dont understand the topic good enough. thank you.

Project "DELTA" has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for five years. Project "OMICRON" costs $25,000 and is expected to produce cash flows of $7,400 per year for five years. a. Calculate the two projects Net Present Values, Payback and Discounted Payback ranking methods, assuming a discount rate of 12%. b. Which project would be selected, assuming that are Mutually Exclusive, using each ranking method? c. Discuss in detail the advantages/disadvantages associated with the Payback criterion. d. Which of all the above-mentioned criteria is the best one for the appropriate selection of Independent and Mutually Exclusive projects