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Alternative Capital Investments

The investment committee of Sentry 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 $$738,000.$ The estimated net cash flows from each project are as follows:

Net Cash Flow

$\backslash$table$[[$Year$,\backslash$table$[[$Office$],[$Expansion$]],$Server$],[1,$$$206,000,$$$272,000$