Question: Consider the following 3 projects which all have the same risk (and therefore the same expect return): Par value = $1000 A) Project #1 with

Consider the following 3 projects which all have the same risk (and therefore the same expect return): Par value = $1000

A) Project #1 with the following Cash Flows:

Cash Flow at Time 0 = -2,000

Cash Flow at Time 1= 1500

Cash Flow at Time 2 = 500

Cash Flow at time 3 = 500

B) Project #2 with the following Cash Flows:

Cash Flow at Time 0 = -2,000

Cash Flow at Time 1 = 900

Cash Flow at Time 2 = 900

Cash Flow at Time 3 = 900

C) Project #3 with the following Cash Flows:

Cash Flow at Time 0 = -2,000

Cash Flow at Time 1 = 400

Cash Flow at Time 2 = 400

Cash Flow at Time 3 = 2,000

Assume that you only have $1,000 to invest. How would you invest your money? Assume a discount rate of 5%.

Please show work without using Excel

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