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The owner of a business is presented with two alternative projects. The first project involves the investment of $5,000 now. In return, the business will

The owner of a business is presented with two alternative projects. The first project involves the investment of $5,000 now. In return, the business will receive a payment of $8,000 in 4 years and a payment of $8,000 in 10 years. The second project involves an investment of $5,000 now and another $5,000 three years from now. The returns will be semi-annual payment of $950 for 10 years. Which project is preferable if the required rate of return is 14% compounded annually?

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