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Present value information for three investment alternatives is shown below: Investment alternative A B C Present value of cash inflows $ 125,000 $ 30,000 $

Present value information for three investment alternatives is shown below:

Investment alternative A B C
Present value of cash inflows $ 125,000 $ 30,000 $ 80,000
Present value of cash outflows $ 110,000 $ 25,000 $ 75,000

Based on this information alone

a) investment alternative A has the highest return on investment.

b) investment alternative B has the highest return on investment.

c) investment alternative C has the highest return on investment.

d) all three investment alternative are producing the same return on investment.

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