The Borders and Noble partnership is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.

Project Mary Project Winnie Project Sarah Capital investment $ 140,000 $175,000 $190,000 Annual net income (Profit ): Year 1 $10,000 $12,500 $19,000 Year 2 10,000 12,000 16,000 Year 3 10,000 11,000 14,000 Year 4 10,000 8,000 9,000 Year 5 10,000 6,000 8,000 TOTAL $50,000 $49,500 $66,000