A company is considering two separate mutually exclusive projects A and B. Project A

requires an initial investment of $100,000 and is expected to generate after-tax cash

flows of $15,000 per year forever. Project B requires an initial investment of $150,000

and is expected to generate after-tax cash flows of $18,000 per year forever. Which of

the following statement is correct?

a Select Project A when the discount rate is 16%

b Select Project B when the discount rate is 11%

C. Select Project A when the discount rate is 5%

d Select Project A when the discount rate is 4%

e. Select Project A when the discount rate is 13%