$[$Fact Pattern #$1]$

A company that annually reviews its investment opportunities and selects appropriate capital expenditures for the coming year is presented with two projects, called Project A and Project B$.$ Best estimates indicate that the investment outlay for Project $A$ is $$30,000$ and for Project $B$ is $$1$ million. The projects are considered to be equally risky. Project $A$ is expected to generate cash inflows of $$40,000$ at the end of each year for $2$ years. Project $B$ is expected to generate cash inflows of $$700,000$ at the end of the first year and $$500,000$ at the end of the second year. The company has a desired rate of return of $8\%.$

$[1]($ Refers to Fact Pattern $1)$

What is the net present value $($NPV$)$ of each project when the desired rate of return is zero?

A$.$

B$.$

C$.$ $$80,000$

Project B

$\backslash$table$[[,$Project A$,$Project B$],[$A$.,$$$30,000,$$$1,000,000$