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A firm is evaluating three capital projects (1, 2 & 3, I know real original!).? Each projects costs $25,000.? The NPV for project 1 =

A firm is evaluating three capital projects (1, 2 & 3, I know real original!).? Each projects costs $25,000.? The NPV for project 1 = $35,000; for project 2 the NPV is $15,000 and for project 3 the NPV is a negative $10,000.

The firm should:

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Accept project 1, reject 2 & 3

Accept projects 1 & 2; reject 3

Accept project 3; reject 1 & 2

Reject all three

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