Managers at Acme Doohickey Co. are considering two projects. Project A: purchase and operation of a new machine, called the Starpunch, for manufacturing Acme doohickeys. The life of this project is three years. Project B: purchase and operation of a new machine, called the Sunspot, for manufacturing Acme doohickeys. The life of this project is two years. The machines have identical capacity and produce the same doohickey. The company only has floor space in its machinists' shop for one machine. Assume that the appropriate discount rate in 7%, compounded annually. Identify which project, if either, managers should accept, and explain why. Table: Expected Cash Flows for Projects A and B A B Year A costs A NCF B costs B NCF revenue revenue 0 ($29,000) ($23,000) 1 $20,000 ($9,000) $20,000 $7,000) 2. $20,000 ($8,000) $20,000 ($6,000) 3 $20,000 $8,000)