Hi please provide an explanation to the attached question. Thank you!

A firm is considering two mutually exclusive projects, A and B. The projects are different in that they have different returns depending on general economic conditions. The firm forecasts that return on the market, and the returns on each project, along with their associated probabilities will be given by the following table. You can assume a 4% risk free rate. Assume the CAPM holds and compare the returns to the cost of capital and decide which project the firm should choose. Extreme Recessio n Moderate Recession Norm al Modera te Growth Extrem e Growth Pr[economic condition] 15% 20% 30% 20% 15% Return on the market -12% 3% 11% 14% 34% Return on project A -38% 3% 12% 21% 56% Return on project B -8% 10% 12% 22% 26%