The Royal Victoria Hospital is evaluating new office equipment offered by three companies.

	Company A	Company B	Company C
Cost	$500	$600	$700
Annual benefit	130	115	100
End of useful life salvage value	0	250	180
Useful life (yrs)	5	10	15

The incremental rate of return between Company A and Company B is close to:

Select one:

a. 30%

b. 25%

c. 9.5%

d. 8.5%