QUESTION $1$

A company is considering two alternative investment projects, both of which require the purchase of new equipment. The following information relates to the two projects:

$\backslash$table$[[,$Project A$,$Project$],[$Duration$,4$ years,$3$ years$],[$Purchase cost of equipment,$$500,000,],[\backslash$table$[[$Estimated annual net cash inflows:$],[q,$ Years $1-3$