49. Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows:

A) Only Investment A is acceptable

B) Only Investment B is acceptable.

C) Both investments are acceptable, but B should be selected because it has the greater net present value

D) Both investments are acceptable, but A should be selected because it has the greater net present value.

End of Year B 1 Investment A $ 8,000 8,000 8,000 2 w N $0 0 24,000 3 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 Which investment should Alfarsi choose