The Oceania Company owns 25 hectares of property. It is considering several different development independent options. One option is a hotel (option A). Also under consideration is a more expensive amusement development (option B). The cash flows (in thousands of dollars) for the two options are projected to be: YEAR OPTION AS OPTION B 5 - 9000 0 -7 200 1 - 300 1 500 2 3 000 3 2 700 4 300 5 000 3 500 4 10 000 Required: A. What is the payback of option A? Option B? Show the required calculations (5 Marks) B. Assuming a required return of 20 per cent, what are the Net Present Value for these 2 options? How do you interpret these? (5 Marks) C. Do the Payback and NPV criteria always rank projects the same way? Why or why not? Discuss about the advantages and disadvantages of them. (3 Marks) D. Discuss which of these two projects is preferable, by assuming a 20 per cent discount rate? (2 Marks)