You are the head of the project selection team at Broken Arrow records. Your team is considering three different recording projects. Based on past history, Broken Arrow expects at least a rate of return of 20 percent. Your financial advisors predict inflation to remain at 2 percent into the foreseeable future. Given the following information for each project, which one should be Broken Arrow€™s first priority? Should Broken Arrow fund any of the other projects? If so, what should be the order of priority based on return oninvestment?

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Recording Project: Time Fades Away Year Investment Revenue Stream $600,000 600,000 75,000 20,000 15,000 10,000 Recording Project: On the Beach Year Revenue Stream $400,000 400,000 100,000 25,000 20,000 10,000 Recording Project: Tonight's the Night Year Revenue Stream $200,000 200,000 25,000 75,000 20,000 10,000