Chestnut Tree Farms Has Identified the Following Two Mutually Exclusive

Multiple Choice

Chestnut Tree Farms has identified the following two mutually exclusive projects: $$\begin{array} { | r | r | r | } \hline \text { Year } & \text { Cash Flow } & \underline { \text { Cash } } \\&{ ( \mathrm { A } ) } & \underline { \text { Flow } ( \mathrm { B } ) } \\\hline 0 & - \$ 40,000 & - \$ 40,000 \\\hline 1 & 11,300 & 17,400 \\\hline 2 & 14,800 & 14,100 \\\hline 3 & 13,700 & 12,900 \\\hline 4 & 7,900 & 2,200 \\\hline\end{array}$$ Over what range of discount rates would you choose Project A?

A) 7.13 percent or less
B) 7.13 percent or more
C) 6.38 percent or more
D) 6.38 percent or less
E) 6.57 percent or more