Redmond Company Is Considering Investing in One of the Following

Redmond Company is considering investing in one of the following two projects: $\begin{array}{c}\text { Annual Cash Inflows }\\\begin{array}{lll}\text { Year: } \\1 \\2 \\3 \\4 \\\text { Total }\end{array}\begin{array}{r} \underline { \text { Project A } } \\\$2,000 \\ 3,000 \\3,000 \\ \underline { 1,000} \\ \underline { \$ 9,000 }\\\end{array}\begin{array}{r} \underline { \text { Project B } } \\\$ 4,000 \\ 2,000 \\2,000 \\ \underline { 1,000} \\ \underline { \$ 9,000 }\\\end{array}\end{array}$ Required:
1)Which project is more desirable strictly in terms of cash inflows? Why?
2)Compute the present value of each project's cash inflows assuming the company's required rate of return is 12%.
3)What is the maximum amount Redmond should be willing to pay for each project?
4)Suppose each project costs $7,000.Which project(s)should be accepted? Note that only one project can be accepted.