Use Both the Replacement Chain Method and the Equivalent Annual Annuity Method to decide which projects are the best:

Bob the builder is deciding between two mutually exclusive projects. The first project is 3 years long with an initial cash outflow of $13000 and expected annual inflows of $5000. The second project is 6 years long with an initial cash outflow of $15000 and annual cash inflows of $3500. The cost of capital is 10%.