Your boss is comparing 3 independent projects with the following characteristics

The required payback period is 5 years, and the required return is 9%.

Based on all of the above information, which project would you recommend your boss to accept?

		Project #1
		Project #2
		Project #3
		Projects #1 and #2
		Projects #2 and #3
		All three projects
		None of the projects

Project #1 Project #2 Project #3 Net Present Value $250 $310 -$280 Internal Rate of Return 12.53% 11.03% 8.09% 2.50 1.80 0.96 Profitability Index Payback period 4.5 years 4.5 years 2.6 years