Question: Cash flow $16 million per year for three years Initial Investment Project A Project B Project C Project D $28 million $24 million $20 million

Cash flow $16 million per year for three years Initial Investment

Cash flow $16 million per year for three years Initial Investment Project A Project B Project C Project D $28 million $24 million $20 million $16 million $12 million per year for three years $8 million per year for six years $6.0 million per year for eight years An investor has a budget of $40 million. He can invest in the projects shown above. If the cost of capital is 6%, what investment or investments should he make? O A. Project A B. Project B O C. Project B and Project D O D. Project C and Project D

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