Boston Corp. is evaluating three projects. Each project will return a total of $600,000 to the company in cash flows over a three-year period. The cash flows for the three projects are as follows: $\begin{array}{|l|l|l|l|l|}
\hline& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \
\hline \text { Project A } & \$ 300,000 & \$ 200,000 & \$ 100,000 & \$ 600,000 \\hline \text { Project B } & 200,000 & 200,000 & 200,000 & 500,000 \
\hline \text { Project C } & 100,000 & 200,000 & 300,000 & 600,000 \
\hline
\end{array}$ Which project represents the best investment for Boston?

Question

Boston Corp. is evaluating three projects. Each project will return a total of $600,000 to the company in cash flows over a three-year period. The cash flows for the three projects are as follows: $\begin{array}{|l|l|l|l|l|} 
\hline& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \
\hline \text { Project A } & \$ 300,000 & \$ 200,000 & \$ 100,000 & \$ 600,000 \\hline \text { Project B } & 200,000 & 200,000 & 200,000 & 500,000 \
\hline \text { Project C } & 100,000 & 200,000 & 300,000 & 600,000 \
\hline
\end{array}$ Which project represents the best investment for Boston?

Quizplus · Accepted Answer

CProject A and Project C are the best investments because they both return a total of $600,000 over the three-year period, whereas Project B only returns a total of $500,000, making it a less attractive investment. The question seems to contain a typo regarding Project B's total, but based on the provided cash flows, Projects A and C offer higher returns.

Boston Corp Which Project Represents the Best Investment for Boston? A) Project

Boston Corp Which Project Represents the Best Investment for Boston?
A) Project