A company with a cost of capital of 12% is considering the following investment projects:

If the projects were independent, which would you accept?

a) Project 3 only

b) All three projects

c) None of the above

d) Project 1 only

e) Both project 1 and 3

Project 1. NPV IRR 1 120,000 $ 150,000 $ 18% 2 150,000 -54,500 $ 9% 3 100,000 84,600 $ 21%