1. A farmer is considering three alternative investments. The required rate of return is 8%. The projected cash flows of the three investments are as follows:

   Year	Investment A	Investment B	Investment C
   0	($100,000)	($100,000)	($100,000)
   1	$5,000	$30,000	$50,000
   2	$10,000	$30,000	$35,000
   3	$20,000	$30,000	$20,000
   4	$40,000	$30,000	$10,000
   5	$60,000	$30,000	$5,000

   Based on simple rate of return, which investment(s) would be acceptable?

   	a.	Investment B
   	b.	Investment A, B, and C
   	c.	Investment A
   	d.	Investment A and B