Your division is considering two projects, each of which requires an upfront expenditure of $25 million. You estimate that the cost of capital is 10 percent and that the investments will produce the following after-tax cash flows (in millions of dollars).

Year	Project A	Project B
1	$5	$20
2	$10	$10
3	$15	$8
4	$20	$6

Assume these projects are mutually exclusive. What would the capital budgeting decision be for the year if the firm used a 2 percentage point risk adjusted discount rate approach to evaluate projects if project A is deemed to be a riskier than usual project? How would your answer differ if the firm did not risk adjust at all?