Suppose Alma Co. has two mutually exclusive investment projects to choose from: Investment A and Investment B. Investment A has an initial investment (year 0) of $0.5 million and future inflows (in millions) of: $4 in year 1, and $3 in year 2. Investment B has an initial investment (year 0) of $3 million and future inflows (in millions) of: $0.6 in year 1, and $3.6 in year 2. The discount rate of both of these investments is 7%. If Alma Co. can afford either investment, then they should:

Group of answer choices

Choose and accept project B.

Choose and accept project A.

Reject both projects.

Choose and accept both projects