Consider the following projects:

A With a start-up cost of $2, benefits of $5 per year for one year and an internal rate of return of 150.00%

B With a start-up cost of $3, benefits of $2 per year for three years and an internal rate of return of 44.63%

C With a start-up cost of $5, benefits of $4 per year for three years and an internal rate of return of 60.74%

D With a start-up cost of $6, benefits of $2 per year for six years and an internal rate of return of 24.29%

(a) With a capital budget of $9 and a company wide return on assets of 10%, which of these projects would you undertake?

(b) What would your answer be if you had access to an outside line of credit at 28% per year?