You are faced with two mutually exclusive projects. If the required rate of return is 15.47%, the NPV of Project A equals that of Project B. You would be indifferent between the two projects. If the required rate of return is less than 15.47%, which NPV would be higher?

Year	Project A	Project B
0	$(1,000)	$(1,000)
1	$300	$600
2	$400	$400
3	$800	$400

a.

Project A, because deferred payments won't be discounted as much.

b.

Project B, because deferred payments won't be discounted as much.

c.

Project A, because the compounding of payments would be greater.

d.

Project B, because the compounding of payments would be greater.