Projects C and D are mutually exclusive. The intern calculated the rate of return for Project C as $3\%$ and the rate of return for Project D as $6\%.$ The incremental rate of return is $6\mathrm{.}5\%.$ The company uses a MARR of $7\%.$

Which project should be selected? $$

Why? $$

$[$ Select $]$

The incremental rate of return is less than the MARR. Choose the lower cost project. Project D has a higher rate of return