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Investment A: Year: 0 1 Cash flow. -$14,000 $6000 2 $6000 4 5 $6000 2 $7000 3 $7000 $7000 $7000 Investment B: Year: 0 1

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Investment A: Year: 0 1 Cash flow. -$14,000 $6000 2 $6000 4 5 $6000 2 $7000 3 $7000 $7000 $7000 Investment B: Year: 0 1 Cash flow. -$15,000 $7000 Investment C: Year: 0 1 Cash flow: $18,000 $12,000 2 $2000 3 $2000 4 $2000 5 $2000 The cash flows for three projects are shown above. The cost of capital is 9.5%. If an investor decided to take projects with a payback period two years or less, which of these projects would he take? O Investment A Investment B Investment C Onone of these investments

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