Hafners Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $15,000,000 for the year. Lauren Bobo,staff analyst at Hafners, is preparing an analysis of the three projects under consideration by Caden Hafners, the company's owner.

Project A

Project B

Project C

Projected cash outflow

Net initial investment

$6,600,000

$8,500,000

$9,000,000

Projected cash inflows

Year 1

$3,600,000

$5,500,000

$4,900,000

Year 2

3,600,000

2,000,000

4,900,000

Year 3

3,600,000

1,100,000

200,000

Year 4

3,600,000

100,000

Required rate of return

6%

6%

6%