There are two mutually exclusive projects A and B. Each requires an investment of K60 million. The following are the cash flows and certainty coefficients.

Year

Project A

Project B

Cash Inflows

MK (000)

Certainty Coefficient

Cash Inflows

MK (000)

Certainty Coefficient

1

30,000

0.7

25,000

0.9

2

25,000

0.8

25,000

0.8

3

25,000

0.9

30,000

0.7

The risk free cut off rate is 10%. Based on certainty equivalent method advise on which project should be undertaken?