Project A has an initial investment of $$12,000.$ It will last two years, and has cash flows that are expected to be $$7,000$ in year $1$ and $$6,000$ in year $2.$ Project B has an initial investment of $$31,000.$ It will last four years and is expected to have cash flows as follows; $$8,000$ in year $1,$ $$9,000$ in year $2,$ $$10,000$ in year $3,$ and $$12,000$ in year $4.$ Both projects can be replicated once finished, and the projects are mutually exclusive. Using a required rate of return of $10\%,$ what is your recommendation?

A

B

Neither A nor B