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o Investment A: Year: Cash flow: 0 - $14.000 1 $6.000 2 $6.000 3 $6.000 4 $6,000 16.000 5 $6.000 Investment B: Year: Cash flow:

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o Investment A: Year: Cash flow: 0 - $14.000 1 $6.000 2 $6.000 3 $6.000 4 $6,000 16.000 5 $6.000 Investment B: Year: Cash flow: 0 - $15,000 1 $7,000 2 $7.000 3 $7,000 4 $7,000 5 $7,000 Investment C: Year: 0 1 2 3 4 5 Cash flow: -S18.000 $12,000 $3,000 $3,000 $3,000 $3,000 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 O B. Investment B O C. Investment C OD. none of these investments

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