2. Projects A and B both have an initial outflow of $100,000. Project A will return a cash flow of $30,000 each year for the next 5 years. Project B will return $40,000 in year 1, $30,000 in year 2, $30,000 in year 3, $30,000 in year 4, and $20,000 in year 5. Which project will have the higher net present value?

   1. Project A

   2. Project B

   3. The answer cannot be determined without knowing the required rate of return.

   4. The answer cannot be determined without knowing the initial investment.