This year has been a tough one for Snyder's Hardware Store. Supply chain issues and rising costs have hurt gross margins. They project that sales for this year are down 20% from last year. Snyder's Hardware Store is considering four independent investment proposals. Snyder has $3 million available for investment during the present period. The investment outlay for each project and its projected net present value (NPV) is presented as follows:

Project Investment Cost NPV

I $ 500,000 $ 40,000

II 900,000 120,000

III 1,200,000 180,000

IV 1,600,000 150,000

Which of the following options should be recommended to Snyder's management?

Multiple Choice

• Projects II, III, and IV only

• Projects I, II, and IV

• Projects III and IV only

• Projects I, II, and III