A company must choose between two investments. Investment C requires an immediate outlay of $70,000 and then, in two years, another investment of $50,000. Investment D requires annual investments of $28,000 at the beginning of each of the first four years. C would return annual profits of $26,000 for 10 years beginning with the first year. Ds profits would not start until Year 4 but would be $45,000 in Years 4 to 10 inclusive. The residual values after 10 years are estimated to be $50,000 for C and $40,000 for D.

a.	Which investment should the company choose if its cost of capital is 13%?

b.	How much more is the preferred project worth today? (Do not round intermediate calculations and round your final answer to the nearest whole dollar.)