Lamees Company is considering an investment that will cost OMR 130,000 and have a OMR 20,000 salvage value at the end of its four years useful life. The companys cost of capital is 12%. During the first 2 years, the net profit after-tax cash flows are OMR 50,000 per year and for the last two years they are OMR 40,000 per year.

1. What is the payback period for this investment (to the nearest month)? 2 years, 6 months2 years, 9 months3 years, 8 months3 years

2. What is the discounted payback period (to the nearest month)? 3 years, 8 months2 years, 6 months3 years, 6 months2 years, 8 months

3. What is the NPV of the above investment proposal? OMR 21,410OMR 82,505OMR 8,420OMR 21,140