Make a recommendation which project should be selected based on the budgeting critiria.

Company XYZ is considering two mutually exclusive projects, Project A and Project B, to expand its manufacturing capacity. Both projects have a lifespan of 5 years. The company's cost of capital is 10%. Project A Details: Initial Investment: $500,000 Expected Annual Cash Flows (net of operating costs): Year 1: $150,000 Year 2: $175,000 Year 3: $200,000 Year 4: $225,000 Year 5: $250,000 Project B Details: Initial Investment: $700,000 Expected Annual Cash Flows (net of operating costs): Year 1: $200,000 Year 2: $220,000 Year 3: $250,000 Year 4: $260,000 Year 5: $300,000 Make a recommendation on which project should be selected based on the capital budgeting criteria