(Ignore income taxes in this problem.) Monson Company is considering three investment opportunities with cash flows as described below:

Required: Compute the net present value of each project assuming Monson Company uses a 12% discount rate. Which Project should Monson choose and why?

Project A: Cash investment now Cash inflow at the end of 5 years......... Cash inflow at the end of 8 vears... $15,000 $21,000 $21,000 Project B: Cash investment now ...... Annual cash outflow for 5 years ......... Additional cash inflow at the end of 5 years....... $11,000 $3,000 $21,000 Project C: Cash investment now ........ Annual cash inflow for 4 years ......... Cash outflow at the end of 3 years ..... Additional cash inflow at the end of 4 years....... $21,000 $11,000 $5,000 $15,000