Explain in details

You are considering the purchase of one of three mutually exclusive projects with cash flows as follows: Project 1 Project 2 Project 3 Initial Outlay $20 000 Initial Outlay $20 000 Initial Outlay $20 000 Cash Flows Cash Flows Cash Flows Years 1 to 4 $7 148 Year 1 $0 $0 Year 2 $26 912 $34 980 Ignoring any tax implications and assuming the appropriate discount rate is 10 percent, which should you select? Assume the cash flow for Project 3 is to be received in Year 4. a) Project 1 b) Project 2 c) Project 3 d) No projects are acceptable