Johnson has the option to invest in 1 of 3 different investments.

Investment 1: $11,000 initial investment in year 0 (non-deductible)

$15,000 taxable income in each year 1 and year 2

Discount rate: 7%

Investment 2: $8,000 initial investment in year 0 (non- deductible) and $8,000 additional investment in year 1 (non-deductible)

$32,000 taxable income in year 2

Discount rate: 9%

Investment 3: $10,000 initial investment in year 0 (non- deductible)

$ 14,000 taxable income in each year 1 and year 2

All taxes paid in year 2

Discount rate: 10%

For all investments Johnson has a marginal tax rate of 30%

Which investment should Johnson make?