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A company has analyzed four possible projects for a specific operation. The firm's cost of capital is 12%. Cash flow projections are provided below

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A company has analyzed four possible projects for a specific operation. The firm's cost of capital is 12%. Cash flow projections are provided below for the four possible projects: Initial End of End of End of Project Outflow Year 1 Year 2 Year 3 Project A $100,000 $90,000 $25,000 $20,000 Project B 100,000 30,000 85,000 20,000) Project C 100,000 40,000 95,000 0 Project D 100,000 90,000 45,000 0 All projects are assumed to have the same risk. Which project should the company select? A. Project D. B. Project A. C. Project B. OD. Project C.

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