Evaluate the following projects with the given cash flows:

Year	Project 1	Project 2	Project 3
Initial Outlay	-$5,000	-$6,000	-$7,000
Year 1	$2,000	$2,000	$2,000
Year 2	$2,000	$2,000	$3,000
Year 3	$2,000	$2,000	$4,000

Required:

1. Calculate the payback period for each project.
2. Compute the NPV for each project at a discount rate of 15%.
3. Determine the IRR for each project.
4. Rank the projects based on the profitability index.
5. Decide which project(s) should be selected if the company's policy is to accept all projects with a positive NPV.