3:25 ull 1 Search A moodle1.du.edu.om Topic: Ch 3 ): Assume you are the finance manager of Methanol Company, and the company is considering investing in one of the two projects. The life for both the...

Extracted text: 3:25 ull 1 Search A moodle1.du.edu.om Topic: Ch 3 ): Assume you are the finance manager of Methanol Company, and the company is considering investing in one of the two projects. The life for both the Projects X and Project Y is 6 years. Project X costs OMR. 20500 and Project Y costs OMR.20500. The discount rate/cost of capital is 3.55%. Required: Use the following techniques to help company to decide which Machine is better and justify why? a) Payback period b) Discount payback period c) Net Present Value d) Present value index -Profitability index. Year Project X Project 1 9876 9300 2 7056 7609 3 9676 4508 7050 8905 9900 9904 3490 1239 : What factors should you keep in our mind as a financial manager when selecting methods of capital budgeting? and Why is rebalancing between methods of capital budgeting are important? II