Opportunity 1 Calls for a $24,000 Investment Which Will Yield

Opportunity 1 calls for a $24,000 investment which will yield income before depreciation of $18,000 the first year and $20,000 the second year. Opportunity 2 calls for an investment of $36,000 resulting, over three years, in an expected income before depreciation of $15,000, $17,000, and $28,000, respectively. The investments are mutually exclusive. The company's hurdle rate is 12%. Using the equivalent-annual-annuity approach what can be concluded about the investments?

A) Opportunity 1 as it has the higher equivalent annuity of $4,743.
B) Opportunity 2 as it has the higher equivalent annuity of $5,643.
C) Opportunity 1 as its NPV is higher at $11,573.
D) Opportunity 2 as its NPV is higher at $10,875.
E) Opportunity 2 as its cash in flow is larger by $10,000.