Cavu Air Inc., a drone manufacturer, is reviewing its annual budget. It is considering investments in three different technologies. Consider the following cash flows of the three independent projects. Assume a discount rate of 13% percent. The company has $20 million to invest in projects this year.

Required return is 13%

Annual cash flows

Projects A B C

Year 0$ (18,000,000)$ (12,000,000)$ (20,000,000)

Year 1 $22,000,000 $10,000,000 $18,000,000

Year 2 $29,900,000 $25,000,000 $32,000,000

Year 3 $8,500,000 $20,000,000 $20,000,000

Based on the NPV, rank these investments.

B, C, A

B, A, C

C, A, B

C, B, A