Question 18.18.XYZ Company is considering two mutually exclusive projects.

Project A

Project cost of $1,000,000 with cash flows of $400,000 for the first two years and $412,230.44 in the third year.

Project B

Project cost of $600,000 with cash flows of $240,000 for the first two years and $252,613.05 in the third year.

Cost of capital for both projects is 9.66%.

Using only the NPV method, which project should you choose?