Current Attempt in Progress Vaughn Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $508,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $72,000. Project B will cost $308,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $46,000. A discount rate of 9% is appropriate for both projects.