Your boss is comparing 3 independent projects with the following characteristics:

	Project #1	Project #2	Project #3
Net Present Value	$250	$310	$280
Internal Rate of Return	12.53%	11.03%	8.09%
Profitability Index	0.50	0.80	0.96
Payback period	4.5 years	4.5 years	2.6 years

The required payback period is 5 years, and the required return is 12.8%.

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

CHOICES:

Project #1

Project #2

Project #3

Projects #1 and #2

Projects #1 and #3

Projects #2 and #3

All three projects

None of the projects