Oman Trading Co. is planning to install a new machinery that will cost R.O. 50,000 and has a useful life of 3 years with R.O. 20000 salvage value. The minimum return expected is 10%. The financial officer had evaluated the available options using the below listed information.

Project CFAT D.CFAT

A 52000 33000

Based on the given results, the NPV and PI for this project are :

Select one:

a.

NPV = R.O. 2000 and PI = 1.04

b.

NPV = R.O. - 15,497.37 and PI = 0.69

c.

NPV = R.O. - 1973.70 and PI = 0.96

d.

NPV = R.O. 2000 and PI = 0.96