Question $34$

Initial Investment

Net Cash flow

Project A $$35$ million $$14$ million per year for four years

Project B

$$21$ million

$$7$ million per year for five years

Project $C$

$$14$ million

$$7$ million per year for four years

Project D

$$21$ million

$$10\mathrm{.}5$ million per year for three years

An investor has a budget of $$35$ million. He can invest in the proje.ts shown above. If the cost of capital is $8\%,$ what investment or investments should he make?

Project A

Project B

Project $B$ and Project $C$

Project $C$ and Project D