Three projects have the following cash flows:

Project 1:

• Year 0: -$12,000
• Year 1: $4,000
• Year 2: $4,000
• Year 3: $4,000
• Year 4: $4,000

Project 2:

• Year 0: -$15,000
• Year 1: $5,000
• Year 2: $5,000
• Year 3: $5,000
• Year 4: $5,000

Project 3:

• Year 0: -$8,000
• Year 1: $2,000
• Year 2: $3,000
• Year 3: $3,000
• Year 4: $2,000

a) Calculate the IRR for each project. b) Calculate the NPV for each project using a 10% discount rate. c) Which project should the firm choose if they are mutually exclusive?