A firm is evaluating two mutually exclusive strategies, a domestic expansion or an international expansion. The annual net cash flows of the two strategies are given below in millions. The two strategies require the same initial investment of $100 million. The firm uses a discount rate of 8 percent for domestic projects and 12 percent for international projects. Which strategy should the firm adopt?

CF1 CF2 CF3 CF4 CF5

Domestic Strategy $25 $25 $30 $30 $30

International Strategy $20 $30 $40 $50 $40