You are a project manager working on contract for a farming cooperative. They've decided to introduce six new wild juice drinks to the market that mix combinations of exotic juices to create some new exciting flavors. You've performed a feasibility study to determine the best way to go about producing, manufacturing, and marketing the wild juice drinks. Your research has yielded three alternatives that you want to compare based on today's value. The project's initial investment is $29,000. Alternative A's cash flows are $14,000 for year 1 and $19,000 for year 2. Alternative B's cash inflows are $21,000 for year 1 and $20,000 for year 2. Alternative C's cash inflows are $15,000 for year 1 and $20,000 for year 2. Assume a 10 percent cost of capital. Which project should you recommend?
C)Alternative B and C are both acceptable