Consider the Following Three Investment Opportunities:Project I Would Require an Immediate

Essay

Consider the following three investment opportunities:Project I would require an immediate cash outlay of $40,000 and would result in cash savings of $9,000 each year for 5 years.Project II would require cash outlays of $7,000 per year and would provide a cash inflow of $40,000 at the end of 5 years.Project III would require a cash outlay of $36,000 now and would provide a cash inflow of $60,000 at the end of 5 years. (Ignore income taxes.)Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.Required:The discount rate is 10%. Use the net present value method to determine which, if any, of the three projects is acceptable.