A company has to make a choice between 2 projects, because available resources in money and kind are not sufficient to run both at the same time. Each project would take 9  months and would cost $250,000. The first project is a process optimization which would result in a cost reduction of $120,000 per year. The benefit would be acheived immediately after the end of the project

The second project would be the development of a new product which could produce the following net profits after the end of the project

1year $15000

2 year $125000

3 year $220000