1,200,00020 1,300,000 a. Use the internal rate of return (IRR) approach to select the best group of projects b. Use the net present value (NPV) approach to select the best group of projects c. Compare, contrast, and discuss your findings in parts a and b. d. Which projects should the firm implement? Why? Capital rationing: NPV approach A firm with a 13% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1 million. P12-20 NPV at 13% cost of capital Project Initial investment -$300,000 -200,000 -100,000 -900,000 500,000 -100,000 800,000 $ 84,000 10,000 25,000 90,000 70,000 50,000 160,000 a. Calculate the present value of cash inflows associated with each project. b. Select the optimal group of projects, keeping in mind that unused funds are costly ETHICS PROBLEM The Environmental Protection Agency sometimes imposes penalties on firms that pollute the environment. But did you know there is a legall 2-21 amnle a mechanism develoned to limit excessive air