Ironwood, Inc., which has a hurdle rate of 12%, is considering three different independent investment opportunities. Each project has a seven-year life. The annual cash flows and initial investment for each of the projects are as follows: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.) Project A Project B Project C Annual cash flows$131,470 $120,520 $109,560 Initial investment 320,000 300,000 230,000 In what order should Ironwood prioritize investment in the projects?
A. C, A, B
B. C, B, A
C. A, B, C
D. A, C, B
Answer: A
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