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.
							NPV at 13%
Project		Initial investment		cost of capital
A		(-) $300,000		$84,000
B		(-) 200,000		10,000
C		(-) 100,000		25,000
D		(-) 900,000		90,000
E		(-) 500,000		70,000
F		(-) 100,000		50,000
G		(-) 800,000		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.