Swifty Company is considering two new projects, each requiring an equipment investment of $101,400. Each project will last for three years and produce the following cash flows: Year Cool Hot 1 $40,200 $44,200 2 45,200 44,200 3 50,200 44,200 135,600 $132,600 The equipment will have no salvage value at the end of its three-year life. Swifty Company uses straight-line depreciation and requires a minimum rate of return of 12%.