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Investment A: Year: 0 1 2 4 5 Cash flow: - $14,000 $4,500 $4500 $4,500 $4,500 $4,500 Investment B: Year: 0 1 2 3 4

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Investment A: Year: 0 1 2 4 5 Cash flow: - $14,000 $4,500 $4500 $4,500 $4,500 $4,500 Investment B: Year: 0 1 2 3 4 5 Cash flow: - $15,000 $5.000 $5,000 $5,000 $5,000 $5,000 Investment C: Year: 0 1 2 3 5 Cash flow: - $18.000 $12000 $2.500 $2.500 $2.500 $2,500 The cash flows for three projects are shown above. The cost of capital is 75%. If an investor decided to take projects with a payback period two years or less, which of these projects would he take? A. Investment A OB. Investment B OC. Investment OD none of these investments

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