Big Blue Co. is considering three investment opportunities having cash flows as described below:

· Project I would require an immediate cash outlay of $10,000 and would result in cash savings of $3,000 each year for 8 years.

· Project II would require cash outlays of $3,000 per year and would provide a cash inflow of $30,000 at the end of 8 years.

· Project III would require a cash outlay of $10,000 now and would provide a cash inflow of $30,000 eight years from now

Required:

If Big Blue has a required rate of return of 14%, determine which, if any, of the three projects is acceptable. Use the NPV method.