Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to

$ 6 comma 000 comma 000$6,000,000 for the year. LenoraLenora BentleyBentley,staff analyst at FitzgibbonsFitzgibbons, is preparing an analysis of the three projects under consideration by CalvinCalvin FitzgibbonsFitzgibbons, the company's owner.

Projected cash outflow

Project A Project B Project C

Net initial investment $3,000,000 $1,500,000 $4,000,000

Projected cash inflows

Year 1 $1,000,000 $400,000 $2,000,000

Year 2 1,000,000 900,000 2,000,000

Year 3 1,000,000 800,000 200,000

Year 4 1,000,000 100,000

Required rate of return 6% 6% 6%