Consider two investments with the following sequences of cash flows:

Net Cash Flow

n	Project A	Project B
0	-3,000	-3,000
1	1,500	300
2	1,200	600
3	600	600
4	600	1,200
5	300	2,100

At M A R R of 12%, which project would you select?

a) Select A as it has a higher rate of return.

b) Select A as the return on incremental investment of Project B is less than 12%

c) Select B as it generates more cash for the same amount of investment

d) neither