Redmond Company Is Considering Investing in One of the Following $\quad$

Redmond Company is considering investing in one of the following two projects:
$\quad$$\quad$$\quad$$\quad$$\text { Annual Cash Inflows }$
$\begin{array}{|c|c|c|c|c|}\hline \text { Year }&\text { Project A } &\text { Project B } \\\hline 1 & \$ 2,000 &\$ 4,000 \\\hline 2 & 3,000 & & 2,000 \\\hline 3 & 3,000 & & 2,000 \\\hline 4 & 1,000 & & 1,000 \\\hline \text {Total} & \$ 9,000 & \$ 9,000 \\\hline\end{array}$
(PV of $1 and PVA of $1)(Use appropriate factor(s)from the tables provided.)
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.