Use the following information to answer next three questions:

IO PI IRR LIFE

Project 1 $300,000 1.12 14.38% 15 years

Project 2 $150,000 1.08 13.32% 6 years

Project 3 $100,000 1.20 16.46% 3 years

Assume that the cost of capital is 12%.

If the firm has unlimited capital and each project is independent, which project(s) should be accepted?

A) Project 1

B) Projects 1 and 2

C) Projects 1 and 3

D) Projects 2 and 3

E) Projects 1, 2 and 3