A selection has to be made between two investment alternatives. The first alternative offers a net return of $47,000 after three years, $30,000 after five years and $26,000 after seven years. The second alternative provides a net return of $13,000 per year for seven years. Determine the preferred alternative according to the discounted cash flow criterion if money is worth 11%.

Select one:

a. 1st alternative preferred, earning extra $41,741

b. 1st alternative preferred, earning extra $12,000

c. 1st alternative preferred, earning extra $3,434

d. 2nd alternative preferred, earning extra $24,183