J=6 year A=41000 B=80000 C=97000 D=115000 E=19000 F=21000 G=31000 H=38000

- Q1. A pharmaceutical company developed four investment plans. The initial investment and the corresponding annual cash flows of the four investment plans for consecutive J years are shown in the following Table Q1. Project Name 11 IV Initial Investment A B C D (OMR) Annual Cash inflow F G H (OMR) I Identify the best project and decide the ranking based on the following profitability methods. a) Average rate of return. b) Payback period. c) Net Present value with discounting rate at 8% d) Benefit to cost ratio with discounting rate at 11% e) Internal rate of return for range of suitable discounting rate [40 Marks]