Andrew Oxnard, chief financial officer, has been asked by Harry Pendel, chief executive officer and cofounder of Pendel & Braithwaite, Ltd. (P&B), to analyze two capital investment projects (projects A and B), which are expected to generate the following profit (p) streams:

Period, t ($) ($)

1 100,000 350,000

2 200,000 300,000

3 250,000 200,000

4 300,000 100,000

5 325,000 100,000

Total 1,175,000 1,050,000

Profits are realized at the end of each period. Assuming that P&B is a profit maximizer, if the discount rate for both projects is 12%, which of the two projects should be adopted?