Project A: 10000

Project B: 500000

Initial Outlay:

Year 1 A: 8000 B: 100000

Year 2 A: 10000 B: 200000

Year 3 A: 5000 B: 300000

Year 4 A: 3000 B: 200000

Year 5-10 A: 5000 B: 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

Use 10 % discount rate