3. Beta-Max Corporation is considering two investment proposals. One involves the development of 10 discount record stores in Chicago. Each store is expected to provide an annual after-tax profit of $35,000 for 8 years, after which the lease will expire and the store will terminate. The other proposal involves a classical record of the month club. Here, the company will devote much effort to teaching the public to appreciate classical music. Management estimates that after-tax profits will be zero for 2 years, after which they will grow by $40,000 a year through year 10 and remain level thereafter. The life of the second project is 15 years. On the basis of this information, which project do you prefer? Why?