Oriole Company is considering two different, mutually exclusive capital expenditure proposals.

Project A will cost $469,000, has an expected use life of 15 years and a salvage value of zero, and is expected to increase net annual cash flows by $69,000. Project B will cost $329,000, has an expected useful life of 15 years and a salvage valu of zero, and is expected to increase net annual cas flows by $50,000. A discount rate of 10% is appropriate for both projects.