You have a choice between two projects, Project1 pays $12,000 back at the end of 1 period on an investment of $10,000. Project 2 pays back $6,500 at the end of 1 period on an investment of $5,000. Which project should be chosen and what is the problem that you must be concerned with in this choice?

A. Project 1; discount rate. B. Project 2; discount rate. C. Project 1; project scales. D. Project 2; project scales. E. Project 1, cash flow timings.