10 Use the following information to answer next three questions: PI IO IRR LIFE $300,000 15 years Project 1 1.12 14.38% $150,000 1.08 Project 2 13.32% 6 years $100,000 3 years Project 3 1.20 16.46% Assume that the cost of capital is 12%. If the firm has a maximum capital expenditures budget of $450,000, and if the projects are mutually exclusive but not repeatable, which project(s) should be accepted? Projects 1 and 2 Projects 1 and 3 Projects 2 and 3 Projects 1, 2, and 3 Project 1