Cheese Works owns four dairies in your province and has planned upgrades for all locations. The owners are considering four projects, each of which is independent of the other three projects. The details of each project€”A, B, C, and D€” are shown below.

The owners of Cheese Works have $700 000 to invest in these projects. They expect at least 12% return on all of their projects. In which projects should the owners of Cheese Works invest to maximize the return on their investment?

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Cost at Beginning Project of Year 1 $300 000 360 000 210 000 125 000 Revenues and Cost Savings at End of Year 1 $150 000 Year 2 Year 3 Year 4 Year 5 $120 000 120 000 S0 S0 200 000 120 000 40 000 40 000 10 000 40 000 200 000 100 000 40 000 200 000 120 000 40 000 10 000 30 000