Consider the three 2-year projects with the following cash flow schemes:

t = 0 t = 1 t = 2

Project 1 -10000 6000 7200

Project 2 -10000 10000 2400

Project 3 -10000 20000 -8800

Assuming that the opportunity cost of capital is k = 10%, Calculate the internal rate of return (IRR), the economic interpretation of the rate of return on investment (ROI), the geometric average rate of return (GAR), and the net present value (NPV) of the three projects. If the projects are not mutually exclusive, comment on which project(s) should be selected if the objective is to maximize the shareholders’ wealth.