Initial Investment Cash flow

Project A $ 14

$14 million $ 8

$8 million per year for three years

Project B $ 12

$12 million $ 6

$6 million per year for three years

Project C $ 10

$10 million $ 4

$4 million per year for six years

Project D $ 8

$8 million $ 3.0

$3.0 million per year for eight years

An investor has a budget of $ 20

$20 million. He can invest in the projects shown above. If the cost of capital is 8

8%, what investment or investments should hemake?