Question: Your company is willing to invest up to $500,000 in small projects. The following options are on the table:
Option Total Capital Investment Increase in Annual Sales Increase in Annual Costs
A $150,000 $65,000 $10,000
B $400,000 $200,000 $65,000
C $300,000 $150,000 $60,000
D $200,000 $165,000 $58,000
Assuming an income tax rate of 40% and a minimum rate of return of 20%, what investment(s) would you recommend?