You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:

Year	Project A Cash Flow	Project B Cash Flow
0	$(110,000)	$(110,000)
1	40,000	0
2	40,000	0
3	40,000	0
4	40,000	0
5	40,000	215,000

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If the appropriate discount rate on these projects is

8

percent, which would be chosen and why?