Three potential investments projects (A, B, and C) at Clouse Corporation all require the same initial investment, have the same useful life (three years), and have no expected salvage value. The expected net cash inflows for these projects appear below:
Project A Project B Project C
Year 1 ................. $7,000 $8,000 $9,000
Year 2 ................. $8,000 $8,000 $8,000
Year 3 ................. $9,000 $8,000 $7,000
Given the information above, choose the correct answer from the statements below.
A) all three projects will have the same payback period
B) the net present value of project c will be the highest
C) the internal rate of return for project b will be the highest
D) more than one of the above statements are correct
E) all of the above statements are correct
F) none of the above statements are correct