Comparing Net Present Value

There are two mutually exclusive projects with the following net cash flows:

Project A
-200,000
1. 65,000
2. 60,000
3. 50,000
4. 65,000
5. 50,000

Project B
-125,000
1.60,000
2.40,000
3.40,000
4.35,000
5.45,000

If the company's cost of capital is 12 percent, which project would you choose?

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