The company has $200,000 to invest and wishes to evaluate the following three projects.

Years 1 2 3 4 cost of capital (80,000) 40,000 40,000 40,000 40,000 (100,000) 60,000 30,000 40,000 60,000 1 ovo (60,000) 50,000 30,000 10,000 Years 1 2 3 4 cost of capital (80,000) 40,000 40,000 40,000 40,000 (100,000) 60,000 30,000 40,000 60,000 1 ovo (60,000) 50,000 30,000 10,000