An investor has a budget of $35 million. He can invest in the projects shown below. If the cost of capital is 8%, what investment or investments should he make?

Initial Investment Cash flow

Project A $35 million $14 million per year for four years

Project B $21 million $10.5 million per year for three years

Project C $14 million $7 million per year for four years

Project D $21 million $7 million per year for five years

a) Project A

b) Project B

c) Project B and Project C

d) Project C and Project D

e) Project C and put the extra $21 million in the bank