A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Project A has a cost of $335,000 and the following cash flows: Project A has a cost of $335,000 and the following cash flows: Year 1 $140,000 Year 2 $150,000 Year 3 $100,000 Project B has a cost of $365,000 and the following cash flows: Year 1 $220,000 Year 2 $110,000 Year 3 $150,000 Using a 12% cost of capital, which decision should the financial manager make?

Group of answer choices

Select project A.

Select project B.

Do not select either project.

Select both projects.