Q.2 The director of Al Maha Company has two investment opportunities. The initial investment and expected profit are given below: (20 Marks) Year Project A (RO) Project B (RO) Initial Outlay 400,000 700,000 1 175,000 70,000 2 140,000 140,000 3 35,000 175,000 4 105,000 215,000 5 100,000 240,000 a. You are requested to assess the projects using payback period method and suggest the director on the selection of the project. (16 Marks) b. You are also requested to appraise the management on the limitations of Payback period method. (4 Marks)