GAT, Inc. has a required rate of return of 13% and is considering three projects for adoption, projects AB, LM, and UV. The cash flows for each project are as follows:

Year Project AB Project LM Project UV

0 ($90,000) ($100,000) ($96,500)

1 $39,000 0 (55,000)

2 $39,000 0 100,000

3 $39,000 147,000 100,000

For each project, calculate the (a) net present value, or NPV, (b) internal rate or return, or IRR, and (c) discounted payback period. Assuming the projects are independent, which project(s) should be adopted, and why?