A firm is evaluating two mutually exclusive projects, A and B, each requiring an initial outlay of $400,000. Each project has an expected life of six years. Future annual cash inflows are uncertain and are summarised as follows:

Project A		Project B
Probability	Cash flow	Probability	Cash Flow
0.1	$70,000	0.1	$40,000
0.4	95,000	0.2	50,000
0.4	80,000	0.4	75,000
0.1	85,000	0.2	80,000
		0.1	110,000

Required rates of return are 12% for A and 15% for B.

Calculate the expected value of each project's cash flows.

Determine each project's risk-adjusted net present value.

What other factors might be considered in deciding between these projects?