PineApple Company aims to construct a high-technology robotic machinery system in order to increase the efficiency of its production. The company has 2 offers from 2 different technology companies and can only choose one of them. The offers are as following: PearTech Co.: The new computer-based system requires an initial investment of $900,000, but it will increase the companys sales by $500,000 a year for each of the next 4 years. Moreover, the system also requires an annual operating cost, which is expected to be 50% of its sales. The working capital requirement will be $40,000 at the start of the project (t=0) and expected to decrease by $4,000 each year. Lastly, it is assumed that the new system will be depreciated over 4 years to a salvage value of zero using straight-line depreciation method. PeachTech Co.: The new computer-based system requires an initial investment of $1,000,000, but it will generate $700,000 of sales in year 1 and sales are expected to decrease by $50,000 each year. In addition, the system will cost $300,000 per year to operate. From the start of the project (t=0) the working capital required in each year is expected to be 5% of sales in the following year. Lastly, the new system will be depreciated on a straight-line basis over its 5-year life to a salvage value of $300,000. a. If the tax rate is 40% what are the cash flows of these projects in each year? b. If the opportunity cost of capital is 10%, what are the NPVs of these projects? Which project will you choose according to the NPV criteria?