1. Projects A and B have the following expected net cash flows:

.

Time	Project A Cash Flow	Project B Cash Flow
0	-P1,000,000	-P1,000,000
1	500,000	700,000
2	500,000	700,000
3	500,000	-

Assume that both projects have 10% cost of capital, and each of the projects can be indefinitely repeated with the same net cash flows. Calculate the 6-year extended NPV of the project that creates the most value.