Question: Al Bustan LLC is considering a project where the initial investment is RO 10000 and the project is expected to generate RO 4570 every year

 Al Bustan LLC is considering a project where the initial investment

Al Bustan LLC is considering a project where the initial investment is RO 10000 and the project is expected to generate RO 4570 every year for 4 years. Now the company is thinking to take a loan from bank muscat. The bank says that the loan must be repaid in 3 years. If we calculate the payback period then the decision of the company will be O a. Reject the project as the total profit generated is less than other opportunity O b. None of the options O c. Accept the project as the initial investment is recovered O d. Reject the project as it is taking much time in recovering initial investment

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