Consider the following 3 projects which all have the same risk (and therefore the same expect return):

(Par Value on all bonds is $1,000)

A) Project #1 with the following cash flows:

CASH FLOW CASH FLOW CASH FLOW CASH FLOW

AT TIME 0 AT TIME 1 AT TIME 2 AT TIME 3

-2,000 1,500 500 500

B) Project #2 with the following cash flows:

CASH FLOW CASH FLOW CASH FLOW CASH FLOW

AT TIME 0 AT TIME 1 AT TIME 2 AT TIME 3

-2,000 900 900 900

C) Project #3 with the following cash flows:

CASH FLOW CASH FLOW CASH FLOW CASH FLOW

AT TIME 0 AT TIME 1 AT TIME 2 AT TIME 3

-2,000 400 400 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.