Tompkins Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below:

		Investment I		Investment II
Period 1	$	1,450	$	3,990
Period 2		1,450		2,720
Period 3		2,720		2,720
Period 4		5,080		1,270
Total	$	10,700	$	10,700

Select the correct statement.

Time value of money techniques are not useful for comparing these investments.

Tompkins should be indifferent between the two investments because they provide the same total cash inflows.

Tompkins should choose Investment I because of the time value of money.

Tompkins should choose Investment II because it generates more immediate cash inflows.