Oman Trading Co. a budget of R.O. 50,000 for expansion projects. If available Projects A and B each cost R.O. 40,000 and Project C costs only R.O. 40,000. The company aims to achieve 12% as a minimum rate of return in the coming 3 years. The financial officer had evaluated these project using the below listed capital budgeting techniques. Based on the given results, which project should be accepted:

for Project A, PBP =3, D.PBP=2 ARR= 12%

for Project B, PBP =5, D.PBP=4 ARR= 13%

for Project C, PBP =6, D.PBP=5 ARR= 14%

Select one:

a.

Accept both Project B and C

b.

Accept Project B

c.

Accept project A

d.

Accept both Project A and B