=+Blue Ridge Development Company has two competing projects: an apartment complex and an office building. Both projects have an initial investment of $720,000. The net cash flows esti¬

mated for the two projects are as follows:

Net Cash Flow Year Apartment Complex Office Building 1 $240,000 $280,000 2 210,000 280,000 3 210,000 265,000 4 160,000 265,000 5 150,000 6 120,000 7 90,000 8 60,000