You are evaluating three projects. Project 1 involves an initial investment of $2000 and returns $700 annually for 4 years. Project 2 requires $3000 initially and provides $1000 per year for 4 years. Project 3 needs $4000 upfront and yields $1200 per year for 4 years.

a) Compute the NPV at a discount rate of 6%.

b) Based on the NPV, determine which project(s) should be accepted.

c) Find the payback period for each project.

d) Which project(s) meet a 2-year payback period requirement?