Pronghorn Company is considering two new projects, each requiring an equipment investment of $100,400. Each project will last for three years and produce the following cash flows: Year Cool Hot 1 $39,300 $43,300 2 44,300 43,300 3 49,300 43,300 132,900 $129.900 The equipment will have no salvage value at the end of its three-year life. Pronghorn 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 3 0.71178