A construction company is considering two different projects, Project A and Project B. Project A has an initial cost of $500,000 and is expected to generate cash flows of $150,000 per year for the next five years. Project B has an initial cost of $800,000 and is expected to generate cash flows of $220,000 per year for the next five years. The company's discount rate is 10%. Which project should the company choose based on the net present value (NPV) and the profitability index (PI)? Show all calculations and explain your decision. (20 marks)

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