A company is considering two investment projects. Project A has a cost of $50,000 and is expected to generate cash flows of $10,000 per year for the next six years. Project B has a cost of $70,000 and is expected to generate cash flows of $16,000 per year for the next six years.

Assuming a discount rate of 8%, which project should the company choose based on the net present value (NPV) criterion?

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