Arnold, Inc. is faced with choosing between two mutually exclusive projects with different lives. It requires a return of 12% on these projects. Project A requires an initial investment at time 0 of $500,000 and is expected to require annual maintenance cash outflows of $310,000 per year over its 2-year life. Project B requires an initial outlay at time 0 of $600,000 and is expected to require annual maintenance cash outflows of $260,000 per year over its 3-year life. Both projects are acceptable investments and provide equal quality service. Which project would you recommend for Arnold, Inc. , why?