Mace Ltd is planning its capital budget for 19_7 and 19_8. The company’s directors have reduced their initial list of projects to five, the expected cash flows of which are set out below:

Project	19_7	19_8	19_9	19_0	NPV
1	60,000	30,000	25,000	25,000	1,600
2	30,000	20,000	25,000	45,000	1,300
3	40,000	50,000	60,000	70,000	8,300
4	0	80,000	45,000	55,000	900
5	50,000	10,000	30,000	40,000	7,900

None of the five projects can be delayed and all are divisible. Cash flows arise on the first day of the year. The minimum return required by shareholders of Mace Ltd is 10 percent p.a. Which projects should Mace Ltd accept if the capital available for investment is limited to £100,000 on 1 January 19_7, but readily available at