Moore Ltd is considering two mutually exclusive projects to expand its market. The projects details are as follows:

Project A:This project requires an initial investment of 1,500,000 with a four-life span. Forecasted sales and operating expenses are shown in the table below:

Year 1 Year 2 Year 3 Year 4 Sales revenue 640,000 800,000 880,000 990,000 Material cost 80,000 84,000 90,000 95,000 (E ) Labour cost (E) 40,000 38,000 42,000 52,000 Other variable 12,000 14,000 16,000 18,000 (E Other fixed cost (f) (not 12,000 16,000 20,000 22,000 including depreciation)