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Susan is considering two independent projects with the same discount rate of 10 percent. Project A costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. She has sufficient funds to finance any decision she makes. Which project or projects, if either, should she accept and why?

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