"Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 8%. If an investor decided to take projects with a payback period of 2 years or less, which of these projects would he take? --- Investment A. Investment B. Investment C. none of these investments. " Investment A. Investment B. Investment C. none of these investments. QUESTION 10 "Mary is in contract negotiations with a publishing house for her new novel. She has two options. OPTION 1: She may be paid $200000 up front, and receive royalties that are expected to total $60000 at the end of each of the next 6 years. Alternatively, OPTION 2: she can receive $350000 up front and no royalties. Which of the following investment rules would indicate that she should take Option 1, given a discount rate of 2\%? Rule I: The Net Present Value rule; Rule II: The Payback Rule with a payback period of 2 years; ---Rule I only. Rule II only. Rule I and II. None. " Rule I only. Rule II only. Rule I and II. None