The company objectives have a target ROCE of 15% in the third year and operational profitability in the first year one. Which of the projects you would confirm?

Project a) Sales 10 M, costs 25000, Margin 30%, Capital employed 20 M BRL. Annual growth in sales is 10%, and annual growth in costs is 5%. Project b) Sales 20 M, costs 50000, Margin 33%, Capital employed 19 M BRL. Annual growth in sales is 5%, and annual growth in costs is 6%.