Assuming a pharmaceutical giant is considering three vaccines but with limited funds with the expected pattern of cash flows for each vaccine is as follows:

Project Cash Flows

CovidCure CovidSolution CovidMixture

$ $ $

Initial Outlay (11) (8) (9)

Year 1 4 5 5

Year 2 4 2 3

Year 3 5 3 3

Year 4 6.5 4 5

The company has a cost of capital of 12 per cent and the investment budget for the year that has just begun is restricted to $12 million. Each vaccine is divisible (that is, it is possible to undertake part of a vaccine if required).

Which vaccine(s) should the business invest in and why?