XYZ Corporation is considering two mutually exclusive projects: Project A and Project B. The company can only choose one project, and it has a cost of capital of 8%. The details of the projects are as follows:

Project A requires an initial investment of $1,000,000 and will generate cash flows of $300,000 per year for 4 years.

Project B requires an initial investment of $1,500,000 and will generate cash flows of $400,000 per year for 4 years.

Using the net present value (NPV) method, which project should XYZ Corporation choose?