Nielsen Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows and using a 10% discount rate, determine which projects it would have accepted under the payback period and which it will now reject under the discounted paybackperiod.

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Cash Flow Initial cost Year 1 Year 2 Year 3 Project 1 $10,000 $ 4,000 $4,000 $ 4,000 Project 2 $15,000 $ 7000 5,500 $ 4,000 Project 3 $8,000 $3,000 $3,500 $4,000 Project 4 $18,000 $10,000 $11,000