A firm with a cost of capital of 7 percent is evaluating three independent capital projects. The internal rates of return are as follows: Project Intal Rate 1 2 3 of Return 11% 8 6 The firm should accept Project 2, and reject Projects 1 and 3 accept Project 1, and reject Projects 2 and 3 accept Project 1 and 2, and reject Project 3 accept Project 3, and reject Projects 1 and 2