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3) Mountain Brook Company is considering two investment opportunities whose cash flows are provided below: Year Investment A Investment B Year 0 ($15,000) ($9,000) Year

3) Mountain Brook Company is considering two investment opportunities whose cash flows are provided below: Year Investment A Investment B Year 0 ($15,000) ($9,000) Year 1 5,000 5,000 Year 2 5,000 4,000 Year 3 5,000 3,000 Year 4 4,000 1,000 The company's hurdle rate is 12%. What is the present value index of Investment A? A. 0.97 B. 1.00 C. 1.01 D. 1.12

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