1. Growth Enterprise, Inc. (GEI) has $40 million that it can invest in any or all of the four capital investment projects (A, B, C, D), which have cash flows as shown in the following table. Table 1. Comparison of Project Cash Flows ($ thousand dollars) Project A. Type of cash flow Year 0 Year 1 Year 2 Year 3 Investment -$10,000 0 0 0 Revenue 0 $21,000 0 0 Operating 0 $11,000 0 0 expense B. Investment -$10,000 0 0 0 Revenue 0 $15,000 $17,000 0 Operating 0 $5,833 $7,833 0 expense C. Investment -$10,000 0 0 0 Revenue 0 $10,000 $11,000 $30,000 Operating 0 $5,555 $4,889 $15,555 expense D. Investment -$10,000 0 0 0 Revenue 0 $30,000 $10,000 $5,000 Operating 0 $15,555 $5,555 $2,222 expense All revenues and operating expenses can be considered cash items. Each of these projects is considered to be of equivalent risk. The investment will be depreciated to zero on a straight-line basis for tax purpose. GEI's marginal corporate tax rate on taxable income is 40%. None of the projects will have any salvage value at the end of their respective lives.