Which of the following two investment opportunities is preferred if you have a discount rate of 16%, and why?

Investment A: Costs 404 SEK today and provides a positive cash flow of 83 SEK per year forever.

Investment B: Costs 592 SEK today and provides a positive cash flow of 96 SEK per year forever.

(Answers are rounded to integers)

a. Investment B is preferred because it has the highest NPV of 8

b. Investment A is preferred because it has the lowest initial cost of 404.

c. Investment B is preferred because it has a higher annual cash flow of 96.

d. Both investments are equally good e. Investment A is preferred because it has an NPV of 115