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Project X and Project Y are identical in all respects (including revenues, costs, investments, working capital) except that Project X uses a machine that has
Project X and Project Y are identical in all respects (including revenues, costs, investments, working capital) except that Project X uses a machine that has a higher book value than Project Y as of today. Both machines will be fully depreciated using straight line depreciation over the next three years and neither has any resale value at the end of the project. If Projects X and Y are mutually exclusive projects, which project should be chosen and why?
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