capital investment decisions

Mandell, Inc. is evaluating three possible investments in depreciable plant assets. The company uses the straight - line method of depreciation. The following information is available: Investment A Investment B Investment C Initial capital investment $290.000 $240,000 $310,000 Estimated useful life 8 years 7 years 10 years Estimated residual value $15,000 $20,060 $30.000 Estimated annual net cash flow for each year $56,000 $31.000 $67,000 Required rate of return 12% 12% 12% Rank the projects as to order of preference if based on the best payback period OA. C, B. A O B. C, A, B O C. A, B. C en OD. B, C. A