Real Time systems INC is cnsidering the development of one of two mutally exclusive new computer models Each will require a net investment of 5000 dollars.

Period	Project A	Project B
1	2000	3000
2	2500	2600
3	2250	2900

The cash figures for each project as shown above.

Model B which will use a new type of laser disk drive, is considered a high risk project, while Model A is of vaverage risk. Real Time add 2 percentage points to arrive at a risk adjusted discount rate when evaluating a high risk porject. The rate used for average risk prjects is 12 percent. Which of the following statements regarding the NPV for Models A and B is most correct.

NPVa 5380 NPVa 6590

NPVa 197 NPVb 1590

NPVa 380 NPVb 1815

NPVa 380 NPVb1590

None of them are correct