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You have two mutually-exclusive projects. Let's call them Sand and Sea. Both are three-year projects. The Sand project requires an initial investment of 650,000 Mexican

You have two mutually-exclusive projects. Let's call them "Sand" and "Sea". Both are three-year projects. The "Sand" project requires an initial investment of 650,000 Mexican pesos (MXN), and has Net Cash Flows of 220,000 MXN, 330,000 MXN and 440,000 MXN in years 1, 2 and 3, respectively. The "Sea" project has a required investment in the amount of 65% of the required investment for the "Sand" Project, and then has Net Cash Flows of 200,000 MXN, 200,000 MXN and 220,000 MXN in years 1, 2 and 3, respectively. At MARR of 20.2%, which project should be chosen?

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