The owner of a business is presented with two alternative projects. The first project involves the investment of $5000 now. In return, the business will receive a payment of $8000 in 4 years and a payment of $8000 in 10 years. The second project involves an investment of $5000 now and another $5000 3 years from now. The returns will be semi-annual payments of $950 for 10 years. Which project is prefer- able if the required rate of return is 14% compounded annually?