Alternative Capital Investments The investment committee of Shield Insurance Co. is evaluating two projects, office expansion and upgrade to computer servers. The projects have different useful lives, but each requires an investment of $1,500,000. The estimated net cash flows from each project are as follows: Net Cash Flow Year Server Upgrade $498,000 498,000 498,000 498,000 Office Expansion $377,000 377,000 377,000 377,000 377,000 377,000 The committee has selected a rate of 10% or purposes of net present value analysis. It also estimates that the residual fourth year, the office expansion's residual value would be $471,000. e at he end ofea pro use 1 -s but at een fie