=+/ 1. Project II, $72,626 The investment committee of Safe Hands Insurance Co. is evaluating two projects. The projects have different useful lives, but each requires an investment of $225,000. The estimated net cash flows from each project are as follows:

Year Net Cash Flows Project 1 Project II 1 $70,000 $98,000 2 70,000 98,000 3 70,000 98,000 4 70,000 98,000 5 70,000 6 70,000