Two projects, call then A and B, have different initial investment costs and probable cash flows for each of their five year lifetimes. Risk-free rate of return on capital is 12% annually. The following table shows the relevant details. Project A B Initial Investment (p=1) $ 150,000 $180,000 Annual cash flows (Years 1 to 5) and associated $ 35,000 (p=0.3) $ 45,000 (p=0.3) probability p of occurrence (Assume each annual cash flow to be mutually $ 40,000 (p=0.5) $ 55,000 (p=0.5) independent) $ 50,000 (p=0.2) $ 67,000 (p=0.2)