Oman Aluminum Rolling Company LLC (OARC) was established in 2011 as a green field aluminum rolling mill plant at the Sohar Industrial Estate to produce flat rolled aluminum products. The management of the company is considering investing in a new facility and the following cash flows are expected to result from the investment:

Project A

Year	Cash Outflow (OMR)	Cash Inflow (OMR)
1	350,000	100,000
2	1,050,000	200,000
3	50,000	130,000
4		160,000
5		130,000
6		400,000
7		240,000
8		200,000
9		210,000
10		210,000

Project B

Year	Cash Outflow (OMR)	Cash Inflow (OMR)
1	1,450,000	150,000
2		250,000
3		150,000
4		260,000
5		230,000
6		500,000
7		250,000
8		200,000
9		210,000
10		250,000

You have been recently appointed as the Accounts Officer of the company and requested to evaluate the performance of Project A and Project B based on traditional capital budgeting technique. Which one of these projects is performing better? Rationalize the project selected if any; through the analysis based on Payback Period Method. Do your analysis and evaluation of the projects change if cash flows for the 6^th year change to OMR450,000? Justify your answer.