ABC is considering updating its manufacturing facilities to improve both the efficiency and the quality of its products. Both projects will cost $175,000 and are expected to have a three-year useful life. The discount rate set by management will be the same for both projects. After-tax cash flows for each project are as shown in the accompanying chart. New Equipment Lean Principles Year 1 Year 2 $30,000 $110,000 Year 3 $78,000 $85,000 $117,000 $30,000 Given these expected cash inflows, which of the investments will yield the highest net present value?