A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of $1,000,000; the firm's cost of capital is 15

percent.A

firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of $1,000,000; the firm's cost of capital is 15 percent.ModifyingAbove and below Start 2 By 1 Matrix 1st Row 1st Column Bold Project Initial Investment IRR NPV 2nd Row 1st Column Start 6 By 1 Matrix 1st Row 1st Column 1 $ 200 comma 000 19 % $ 100 comma 000 2nd Row 1st Column 2 400 comma 000 17 20 comma 000 3rd Row 1st Column 3 250 comma 000 16 60 comma 000 4st Row 1st Column 4 200 comma 000 12 minus 5 comma 000 5st Row 1st Column 5 150 comma 000 20 50 comma 000 6st Row 1st Column 6 400 comma 000 15 150 comma 000 EndMatrix EndMatrix with brackets

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? (See Table 10.4)

A.

2, 3, 4, and 5

B.

1, 3, 4, 5, and 6

C.

1, 2, 3, 4, and 5

D.

1, 3, 5, and 6