4. leslie is charged with determining which small projects should be funded. along with this assignment, she has been granted the use of $15,000 for a maximum of two years. she is considering three projects. project a costs $7,500 and has cash flows of $4,000 a year for years 1 to 3. project b costs $8,000 and has cash flows of $3,000, $4,000, and $3,000 for years 1 to 3, respectively. project c costs $2,000 and has a cash inflow of $2,500 in year 2. what decisions should she make regarding these projects if she assigns them a mandatory discount rate of 8.5 percent? explain why. answer options:

1. accept either projects a and c or projects b and c, but not all three as there is insufficient financing

2. accept project c and reject projects a and b because only project c has a discounted payback that is less than two years

3. accept projects a and c and reject project b as they have the shortest discounted payback periods than fit within the $15,000 allocation

4. accept projects a and c and reject project b as a and b payback within two years

5. accept projects b and c and reject project a as this combination uses the most initial capital