1. Gerimis Bhd. is considering two mutually exclusive projects with widely differing lives. The companys cost of capital is 10 percent. The project cash flows are summarized below:

	Project A	Project B
Initial Investment	( 79,510)	( 89,104)
Year

1	19,810	22,108
2	19,810	22,108
3	19,810	22,108
4	19,810	22,108
5	19,810	22,108
6	19,810	22,108
7	19,810	22,108
8	19,810	22,108
9	19,810	22,108
10	19,810	22,108

You are required to calculate and choose the project that Gerimis Mengundang should take by using:

1. Payback period technique
2. Net Present Value (NPV) technique
3. Profitability Index (PI) technique