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Investment A: Year: Cash flow: 0 - $14,000 2 $6,000 $6,000 $6,000 $6,000 $6,000 Investment B: Year: Cash flow: 0 1 $7,000 2 $7,000 -

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Investment A: Year: Cash flow: 0 - $14,000 2 $6,000 $6,000 $6,000 $6,000 $6,000 Investment B: Year: Cash flow: 0 1 $7,000 2 $7,000 - $15,000 3 $7,000 4 $7,000 $7,000 Investment C: Year: Cash flow: - $18,000 $12,000 $3,500 $3,500 $3,500 $3,500 The cash flows for three projects are shown above. The cost of capital is 8.5%. If an investor decided to take projects with a payback period two years or less, which of these projects would he take? O A. Investment A OB. Investment B O C. Investment C OD. none of these investments

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