You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8% rather than 11%? If so, what should you do?

Year

0

1

2

3

CF_A

-$240,000

$0

$0

$325,000

CF_B

-$198,000

$110,800

$82,500

$45,000

A.Yes; Select A at 8% and B at 11%.

B. Yes; Select B at 8% and A at 11%.

C. Yes; Select A at 8% and select neither at 11%.

D. No; Regardless of the required rate, project A always has the higher NPV.

E. No; Regardless of the required rate, project B always has the higher NPV.