The Temasek Corporation is considering two mutually exclusive projects. Both required an initial outlay of \($12,000\) and will operate for 5 years. Project A will produce expected cash flows of \($4,000\) per year for years 1 through 5, whereas project B will produce expected cash flow of \($6,000\) per year for years 1 through 5. 

Because project B is the riskier of the two projects, the management of Temasek Corporation has decided to apply a required rate of return of 15 percent to its evaluation, but only an 11 percent required rate of return to project A. Determine each project’s risk-adjusted net present value.

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PROJECT A PROJECT B Initial investment $250,000 Cash inflows: Year 1 $400,000 $130,000 $135,000 Year 2 40,000 135,000 Year 3 50,000 135,000 Year 4 90,000 135,000 Year 5 130,000 135,000