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Martinez Company has money available for investment and is considering two projects each costing $70,000. Each project has a useful life of 3 years...

Martinez Company has money available for investment and is considering two projects each costing $70,000. Each project has a useful life of 3 years and no salvage value. The investment cash flows follow:
Project A Project B
Year 1 $ 8,000 $28,000
Year 2 24,000 28,000
Year 3 52,000 28,000

Instructions
If 8% is an acceptable earnings rate, which project should be selected? Justify your response. (Table 1 from Appendix C is needed.)

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