Two mutually exclusive investment proposals are being considered. The following information is available:

Upon further analysis it was found that the probability of cash inflow each year, for the projects is as follows:

Advise for selecting the proposal, assuming cost of capital 10%.

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Cost Life Cash flow each year Salvage value Project A Rs 20,000 2 years Rs 12,000 0 Project B Rs 20,000 2 years Rs 12,000 0