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Q2. Khaleegi company is in a process of Major Investment in Long term projects. They have two alternative projects with different cash inflows. Suggest which

Q2. Khaleegi company is in a process of Major Investment in Long term projects. They have two alternative projects with different cash inflows. Suggest which project will be feasible to choose by using Payback method of capital budgeting. The cash flows are as follows(10 marks)

Year

1

2

3

4

5

Cash Outflow

Cash Flow in project A

6000

4000

7000

4000

8000

25000

Cah Flow in Project B

4000

17000

12000

3000

4000

25000

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