Question: You have two mutually-exclusive projects that are each 3 years long. The first Sand project requires an initial investment of 650,000 Mexican pesos (MXN), and

You have two mutually-exclusive projects that are each 3 years long. The first "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 second "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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