You have 3 projects with the same initial investment of $100,000 but with different annual cash flows over 3 years. Project X produces annual cash flows of $40,000 per year. Project Y produces cash flows of $30,000 in year 1, $40,000 in year 2, and $50,000 in year 3. Project Z produces cash flows of $60,000 in year 1, $20,000 in year 2, and $30,000 in year 3. If the discount rate is 8% and the projects are not mutually exclusive, which project(s) should be chosen?

Select one:

a. Project Y and Z

b. Project X only

c. All 3 should be chosen

d. Project Y only

e. Project Z only

f. Projects X and Y

g. Project X and Z