RL Enterprises recently completed Project A. It is now considering Project B. Both projects have identical revenues, expenses, and expected annual net incomes. Both have a 10-year life and use straight-line depreciation. However, the annual rate of return for Project B is greater than the annual rate of return for Project A. What could cause this difference?

a) Average investment is lower, probably because the salvage value is higher.

b) Average investment is higher, probably because the salvage value is lower.

c) Average investment is lower, probably because the salvage value is lower.

d) Average investment is higher, probably because the salvage value is higher.