Chandler Tire Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project 1 will produce annual cash flows of $52,000 at the beginning of each year for six years. Project 2 will produce annual cash flows of $48,000 at the end of each year for eight years. The company requires a 15% of return, which project should the company select and why? 5