Consider the following cash flows for two mutually exclusive investments:

t=0 t=1 t=2 t=3

A -1900 657 829 962

B -3060 322 450 3048

If the financing rate is 7.52%, which of the following is correct?

Select one:

a. Choose B because the NPV is greater by $ 202

b. Choose A because the NPV is greater by $ 121

c. Choose A because the NPV is greater by $ 202

d. You are indifferent between the two investments

e. Choose B because the NPV is greater by $ 121