Three projects, A, B, and C, require initial investments of $3500, $4000, and $4500 respectively. Project A returns $1000 annually for 5 years. Project B returns $1200 annually for 5 years. Project C returns $1500 annually for 5 years.

a) Compute the NPV at a 5% discount rate.

b) Based on NPV, which project(s) should be accepted?

c) Calculate the payback period for each project.

d) Evaluate the projects with a payback period threshold of 4 years.