34.The following cash flows are estimated for two mutually exclusive projects (r = the WACC or investor's required rate of return):

YearProject A cash flowsProject B cash flows

0-$100,000-$110,000

160,00020,000

240,00040,000

320,00040,000

410,00050,000

When is Project B more lucrative than Project A?

a.For all values of r less than 7.25%

b.Project B is always more profitable than Project A

c.Project A is always more profitable than Project B

d.For all values of r less than 6.57%

e.For all value of r greater than 6.57%.