Compare the following three projects using NPW analysis. Draw the cash flow diagrams. Which project is the most preferable from the NPW standpoint? What other considerations might the PM consider? Assume an interest rate of 8%. The projects are mutually exclusive (you can only choose 1 of them) for financial reasons.

a. Initial Investment cost upfront = -$10k, revenue in years 2,3,4,5 = +$8k, one-time payment in year 4 = -$5k and salvage value in year 6 = +$3k.

b. Initial Investment cost upfront = -$20k, revenue in years 1,2,3,4 = +$10k, one-time payment in year 2 = -$3k and salvage value in year 4 = +$4.5k.

c. Initial Investment cost upfront = -$30k, revenue in years 1,2,3 = +$15k, no salvage value.