Creative Furniture is considering two mutually exclusive projects that would automate part of their production facilities. Project A costs $$120,000$ and would produce net cash flows of $$37,000$ annually for $5$ years. Project B also costs $$120,000$ and will produce annual net cash flows of $$25,000$ for $10$ years. Creative's cost of capital is $11\%.$ Using a replacement chain, which project should be chosen? Assume that in $5$ years, Project A will still cost $$120,000$ and produce $5$ more years of $$37,000$ annual net cash flows.

a$.$ Project $B,$ as $NPV$ is $$492$ higher.

b$.$ Project $A,$ as NPV is $$6,468$ higher

C$.$ Project $B,$ as NPV of $A$ is negative.

d$.$ Project $A,$ as NPV of $B$ is negative.