The CFO of Roland GmbH wants to improve its new production plant and has two mutually exclusive alternatives to choose from:

1. The first option would be to enlarge the plant and buy a new building. This involves an initial cost of $2,900,000 and is expected to generate $140,000 a month in revenue for the next 2 years at a discount rate of 9.5% compounded annually.

2. Alternatively, the company could invest the $2,900,000 in the stock market at an expected return of 9.5% per year compounded annually.

Decide which is the best choice between A or B. Your result must be supported by using the correct capital budgeting model and calculating the results of both A and B