Question: An investor has to choose between the following three projects:
Project A requires an outlay of £35,000 and returns £60,000 after 4 years
Project B requires an outlay of £40,000 and returns £75,000 after 5 years
Project C requires an outlay of £25,000 and returns £50,000 after 6 years
Which project would you advise this investor to put money into if the cost of capital is 10%?