HH Companies has identified two mutually exclusive projects. Project A has cash flows of $40,000, $21,200, $16,800, and $14,000 for Years 0 to 3, respectively. Project B has a cost of $38,000 and annual cash inflows of $25,500 for 2 years. At what rate would you be indifferent between these two projects?

Select one:

a. 6.34 percent

b. 1.72 percent

c. 9.41 percent

d. 4.38 percent

e. 8.28 percent