Novak Company is considering two new projects, each requiring an equipment investment of $100,000. Each project will last for three years and produce the following cash flows: Year Cool Hot 1 $39,100 $43,100 2 44,100 43.100 3 49.100 43,100 132,300 $129,300 The equipment will have no salvage value at the end of its three-year life. Novak Company uses straight-line depreciation and requires a minimum rate of return of 12% Present value data are as follows: Present Value of 1 Period 12% 1 0.89286 2 0.79719