There are a senior manager at Zambia Airways and have been authorized to spend up to K400,000 FOR THE PROJECTS. The three projects you are considering have the fillowing characterics;

Project	Details
Project A	Intial investment of K280,000 .Cash flow of K190,000 at year 1 and K 170,000 at yr 2. This is a plant expansion project
Project B	Intial investment of K390,000. Cash flow of K270,000 at year 1 and K 240,000 at year 2. this is a new product development project
Project C	Intial investment of K230,000. Cash flow of K160,000 at year 1 and K190,000 at year 2. this is a market expansion project

Assume the corporate discount rate is 10%, please offer your recommedations by ranking the projects, backed by your analysis using:

a) Net Present Value

b) Profitabilty Index

c) payback period

d) Chritique the flaws of each technique