Fargo Industries uses the Net Present Value method to make investment decisions and requires a 15% return on all investments. The company is considering two different investments. Each requires an initial investment of $15,000 and will produce cash flows as follows:

Year Investment A Investment B

1 8000 0

2 8000 0

3 8000 24000

Which of the following is NOT true concerning these investments?

The payback period for Investment A is shorter than that for Investment B.

Investment B carries higher risk than Investment A.

The net present value of these investments is the same.

The internal rate of return of Investment A exceeds that of Investment B.