Which of the following two projects (A or B) would you select (assume only one can be undertaken). HINT: Assume that the cashflows are earned at the end of the year. Show your reasoning:

A Capex required Year 0 13,000,000 Annual Cash Flow 2,900,000 No of years of Cash Flow 12 Wacc 18% B Capex required Year 0 26,000,000 Annual Cash Flow 5,200,000 No of years of Cash Flow 15 Wacc 18%