A company has the following mutually exclusive investment alternatives:

Year Project A Project B

0 -$1,000 -$1,000

1 800 1,300

2 800 600

3 800 500

If the cost of capital is 10%, which investment(s) should the company select?

		Project A with a NPV of $989.48
		Project B with a NPV of $989.48
		Both project A and project B
		Project B with a NPV of $1,053.34
		Project A with a NPV of $1,075.96