ABC Ltd is considering the following two mutually exclusive projects with different lifespans.

Project A

This project with a $5-$year lifespan will likely generate an EBITDA of $$25,000$ per year. The project requires an initial investment of $$80,000$ in equipment, which will be depreciated based on the straight$-$line method with residual values of $$10,000$ at the end of year $5.$ Suppose the equipment will be sold at $$20,000$ at the end of year $5$ and the interest expense will be $10,000$ each year.

Project B

This project with an $8-$year lifespan will likely generate an EBITDA of $$30,000$ per year. The project requires an initial investment of $$120,000$ in equipment, which will be depreciated based on the straight$-$line method with residual values of $20,000$ at the end of year $8.$ Suppose the equipment will be sold at $$40,000$ at the end of year $8$ and the interest expense will be $10,000$ each year.

If the tax rate is $40\%$ and the cost of capital is $10\%.$ Please identify which project should be selected.