The cash flows for projects A, B, and C are given below. The cost of capital for each project is 7%. If A and B are mutually exclusive and C is independent, which project, or combination of projects should be accepted?
PROJECT
Year A B C
0 -$200 -$200 -$220
1 $70 $90 $80
2 $80 $80 $85
3 $94 $70 $90
A) Project A
B) Project B
C) Project C
D) Project A & C
E) Project B & C