6. A firm can invest in one of two projects: the purchase of new delivery vans or the trainingof its sales staff in the use of new sales techniques. Both projects cost the same amount ofmoney. The purchase of new delivery vans is expected to reduce costs by $5,000 each yearfor 10 years. The training of the sales staff in the use of a new sales technique is expectedto increase revenues by $5,000 each year for 5 years. Which of the following is TRUE?
(A) Each of these projects would have the same expected rate of return, as they bothcost the same.
(B) The purchase of delivery vans would have the higher expected rate of return, as itwill reduce costs for a longer time period than the sales staff training will increaserevenues.
(C) The training of the sales staff would have the higher expected rate of return, as itincreases revenues whereas the purchase of delivery vans only reduces costs.
(D) The expected rates of return for these two projects cannot be compared, as oneproject reduces costs and the other increases revenues.