Project a and B Have 4 Year Timelines

Multiple Choice

Project A and B have 4 year timelines. Project A has an initial investment of $100,000 and cash inflows of $60,000, $50,000 $40,000 and $40,000. Project B has an initial investment of $75,000 and cash inflows of $50,000, $40,000, $30,000 and $30,000. At what rate of interest would a company be indifferent at choosing project A or B?

A) 17.95%
B) 19.01%
C) 21.86%
D) 23.88%
E) 24.44%