The total investment required for two projects are estimated at OMR 150,000 . The profits expected from the two projects for the first four years are given in the table below .

You are required to answer the following questions based on payback period method 1- What is the payback period for project A ? 2- What is the payback period for project B ? 3- Which of the following is the correct decision ?

Year Project A Project B Year 1 25,000 35,000 Year 2 33,000 36,000 Year 3 45,000 42,000 Year 4 49,000 45,000