A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has an initial budget of -$1,000,000; the firm's WACC is 15 percent. Project Initial Investment IRR NPV 1 $200,000 19% $100,000 2 400,000 17 -20,000 3 250,000 16 60,000 4 200,000 12 -5,000 5 150,000 20 50,000 6 400,000 15 150,000 Using the net present value approach to ranking projects, which projects should the firm accept if the projects are mutually exclusive?

a. 1

b. 1, 3, 4, 5, and 6

c. 6

d. 1, 3, 5, and 6