You are a project manager for your company and you are faced with five potential projects that you can invest in. Free cash flow projections and additional relevant data are given for each project in the table below. Assume that there are no cash flows after year 3. Assume that you can only take each project once and that you can only choose one project. Which project would you invest in? Select the best answer.

I.

Project C

II.

Project D

III.

Project E

IV.

Project A

V.

Project B

\begin{tabular}{|l|cccc|c|c|} \hline & \multicolumn{4}{|c|}{ FCF Forecasts by Year (in \$1,000) } & Interest & \multirow{2}{*}{ IRR } \\ Project & 0 & 1 & 2 & 3 & Rate (EAR) & \\ \hline Project A & (800) & 1,000 & 0 & 0 & 12% & 25.0% \\ Project B & (800) & 0 & 0 & 1,300 & 10% & 17.6% \\ Project C & (700) & 150 & 270 & 420 & 12% & 8.3% \\ Project D & (500) & 120 & 230 & 280 & 18% & 11.0% \\ Project E & (500) & 150 & 350 & 400 & 18% & 30.6% \\ \hline \end{tabular}