Diatom Ltd is considering two mutually exclusive projects, Project A and Project B.

Both projects cost $180,000 and required 20% return.

Following are the expected after tax cash flows of each project (cash flows occur at the end of each year.)

Year	Project A	Project B
1	$140,000	$190,000
2	$40,000	$40,000
3	$88,000	$30,000

Calculate the Net Present Values (NPV) of Project A and B (show all calculations and show answers correct to two decimal places) and explain which project the company should choose.