• Project X: Initial cost: $-3000; Cash Flows: $1000 (Year 1), $1000 (Year 2), $1000 (Year 3)
• Project Y: Initial cost: $-2000; Cash Flows: $500 (Year 1), $1500 (Year 2), $1000 (Year 3)
• Project Z: Initial cost: $-5000; Cash Flows: $2000 (Year 1), $2000 (Year 2), $2000 (Year 3)

a) Compute the NPV for each project using an 8% discount rate.

b) Identify the project(s) to be selected based on NPV.

c) Determine the payback period for each project.

d) Evaluate which project(s) should be chosen if the payback period threshold is 3 years.