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Iron, Inc., which has a hurdle rate of 10%, is considering three different independent investment opportunities. Each project has a five-year life. The annual cash
Iron, Inc., which has a hurdle rate of 10%, is considering three different independent investment opportunities. Each project has a five-year life. The annual cash flows and initial investment for each of the projects are as follows: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.)
Project A | Project B | Project C | |||||||
Annual cash flows | $ | 121,346 | $ | 56,047 | $ | 111,538 | |||
Initial investment | 184,000 | 108,400 | 174,000 |
In what order should Iron prioritize investment in the projects?
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