PDQ Inc. has a weighted cost of capital of 14.6 percent and has an opportunity to invest in the following average risk projects: Project Cost Annual Cash Flow Project life 1 $10,000 $1,992.43 10 years 2 $21,000 $4,526.84 8 years 3 $18,500 $4,580.34 7 years In which projects should PDQ invest? Assume no capital rationing.

1 & 2 2 & 3 1 & 3 cannot be determined from the information provided