A manufacturing firm is evaluating two (2) robotics systems to use in its plant to produce ignition switches for commercial vehicles. The costs and expected cash flows of both systems are shown below (in millions). If the company uses a 12% discount rate for all projects, determine which project should be purchased using the Net Present Value (NPV) method. Explain the rationale for your decision.

Year Project A Project B

0 -$15,000 -$5,000

1 2,000 1,500

2 3,500 1,500

3 3,500 1,000

4 4,000 1,000

5 3,000 2,000