A Company Facing an Interest Rate of 8% Must Choose

Multiple Choice

A company facing an interest rate of 8% must choose among projects offering the following four-year cash flows.If the company is employing the net present value criterion,which project should they choose?

A) $25,000 in year 1;$15,000 in year 2;$10,000 in year 3;and $5,000 in year 4
B) $5,000 in year 1;$5,000 in year 2;$20,000 in year 3;and $30,000 in year 4
C) $15,000 in year 1;$15,000 in year 2;$15,000 in year 3;and $15,000 in year 4
D) $5,000 in year 1;$5,000 in year 2;$25,000 in year 3;and $25,000 in year 4