Decisions, Inc. is evaluating three potential projects. Given the information in the table below, the fact that the firm can invest no more than $25 million, and the hurdle rate is 8%. Project 1 will cost 14 million $, generate a after tax outflow of 42,000 $ in year 1 followed by 4.5 million per year in cash inflows for the next six years. Project 2 with an initial outlay of 15 million $ and will produce after tax cash inflow of 4600,000 $ in year 1 to year 4, -220000 for year 5 and 1100,000 for year 6. Project 3 requires an initial investment of 29 million $ and is expected to generate a cashflow of 15000 $ in year 1, 42000 in year 2 to 4 and 28000 from year 5 to 6.

a. The firm has a required discounted payback period of seven years. Which facility you suggest regarding the project's acceptability? Fully explain your answer.

b. Which facility you would choose based on NPV and IRR if the projects are independent? Fully explain your answer.

c. If the facilities are mutually exclusive, which one you would choose? Why?