Angel Corp. is evaluating two projects. Each project will return a total of $800,000 to the company in cash flows over a three-year period. The cash flows for the two projects are as follows and each project needs to earn 3.2%:

Which project represents the best investment for Angel Corp.?

a. All projects are equally good investments

b. Project A

c. Project B

d. There is not enough information to solve the problem.

Project A Project B Year 1 $300,000 $200,000 Year 2 $200,000 $200,000 Year 3 $300,000 $400,000 Total $800,000 $800,000