Olaf Owns a Carpentry Business and Is Considering Two Different

Olaf owns a carpentry business and is considering two different types of saws, both of which would cost $1,200. Saw A would last three years and generate an additional $500 of revenue per year. Saw B would last only two years but would generate an additional $700 of revenue per year. Assuming an interest rate of 5%, which statement accurately describes Olaf's options?

A) Neither saw would be a wise investment because both saws provide a negative rate of return.
B) Saw A has a higher rate of return than Saw
C) Saw B has a higher rate of return than Sawd.
D) Both saws are equally attractive in terms of rate of return.