1) Defco Constructions is offered two contracts on the same day for building a new retirement village and a new library complex respectively.

1) Defco Constructions is offered two contracts on the same day for building a new retirement village and a new library complex respectively. The contracts promise total profits of $11 million and $14 million, extending over four years and five years, respectively. Each will require investment of $8 million. On the basis of ARR, which contract is more profitable?