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Which of the following three investments will have the highest NPV? All three cases require an initial investment of $45,000, and the required rate of

Which of the following three investments will have the highest NPV? All three cases require an initial investment of $45,000, and the required rate of return is 10%.

A B C
Year 1 net cash in 12,000 27,000 42,000
Year 2 net cash in 22,000 27,000 32,000
Year 3 net cash in 32,000 27,000 22,000
Year 4 net cash in 42,000 27,000 12,000
Total cash flow 108,000 108,000 108,000

A. Investment B

B. Investment C

C. Investment A

D. All three investments will have the same NPV

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