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Aikman Company has an opportunity to invest in one of two projects. Project A requires a S240,000 investment for new machinery with a four-year

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Aikman Company has an opportunity to invest in one of two projects. Project A requires a S240,000 investment for new machinery with a four-year life and no salvage value. Project B also requires a $240,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year.

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