A company is considering two mutually exclusive competing projects, A and B, each requiring an up-front outlay of $2 million. The expected future cash flows associated with each of the projects ($000, stated in nominal terms) are contained the following table (ignoring inflation factors):

Year	1	2	3	4
Project A	800	500	1 200	600
Project B	0	200	1 600	1 900

The companys cost of capital is 12%.

Required:

Calculate the NVP of the projects and advise the company of the appropriate capital investment decision.

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