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Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 15%. If an investor decided to take projects

"Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 15%. If an investor decided to take projects with a payback period of 1 year or less, which of these projects would he take? --- "

Project

Year 0

Cash Flow

Year 1

Cash Flow

Year 2

Cash Flow

Year 3

Cash Flow

Year 4

Cash Flow

Year 5

Cash Flow

A -10500 11000 5000 5000 5000 5000
B -15500 8000 7000 7000 7000 7000
C -18000 20000 1000 1000 1000 1000

A) Investment A

B) Investment B

C) Investment C

D) None of these investments.

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