XYZ Corporation is considering two projects: Project A and Project B. The details of each project are as follows:

Project A:

• Initial investment: $500,000
• Annual cash inflows: $100,000 for the next 5 years
• Cost of capital: 10%

Project B:

• Initial investment: $750,000
• Annual cash inflows: $150,000 for the next 5 years
• Cost of capital: 12%

Which project should XYZ Corporation choose based on the net present value (NPV) method? Show all calculations and explain your answer.