A company has identified a number of promising projects, as indicated in Table 2. The cash flows for the first 2 years are shown (they are all negatives).

Table 2: A List of Projects (values in thousands) Cash flow Project

... 1 ... 2 .. NPV 1 -20 -64 100 2 -40 -50 120 3 -50 -100 100 4 -80 -20 150 5 -80 -80 200 6 -80 -100 240 7 -90 -58 150

The cash flows in later years are positive, and the net present value of each project is shown. The company managers have decided that they can allocate up to $270,000 in each of the first 2 years to fund these projects. If less than $270,000 is used the first year, the balance can be invested at 12% and used to augment the next years budget. Which projects should be funded?