Dwight Donovan, the president of Rooney Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $110,000 and for Project B are $33,000. The annual expected cash inflows are $52,220 for Project A and $13,270 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Rooney Enterprises’ desired rate of return is 6 percent.