A company has five different projects with a total budgeted cost of $20 million that it is considering for next year. The projects IRRs range from a high of 17% and the low of 12%. Additionally, all the projects are in the same industry and could use 10% cost of capital. Based on your knowledge of capital budgeting, what approach should the company use to decide on investing its $12 million?

		Use the NPV and IRR methods to allocate of the funds among the projects
		Use the Incremental IRR of every pair of projects to decide which is better
		Use the Profitability index methods to allocate the funds among the projects
		Use the NPV and Payback period because the time span is one year
		Use the NPV method to allocate of the funds among the projects