Project A Project B

Initial Outlay 10000 500000

Year 1 8000 100000

Year 2 10000 200000

Year 3 5000 300000

Year 4 3000 200000

Year 5-10 5000 10000

Decide which ME project would be chosen under the following process:

1-Payback Period model

2-Discounted Payback model

3-NPV model

4-IRR model (WACC rate 5%)

5-Profitabilty Index model

Using 10 % discount rate.