Boston Corp. is evaluating three projects. Each project will return a total of $600,000 to the company in cash flows over a three-year period. The cash flows for the three projects are as follows:
Year 1 Year 2 Year 3 Total
Project A $300,000 $200,000 $100,000 $600,000
Project B 200,000 200,000 200,000 600,000
Project C 100,000 200,000 300,000 600,000
Which project represents the best investment for Boston?
Project C
Project A
All projects are equally good investments.
Project B