ABC Corp. has $1,200,000 allocated for capital expenditures. Which of the following 5 projects should the company accept to stay within the $1,200,000 budget? Calculate the total NPV of the selected projects. The opportunity cost of capital for each project is 12 percent.

Project	Investment ($thousands)	NPV ($thousands)	IRR (%)
1	500	75	14.5
2	400	-10	10.0
3	300	50	15.2
4	200	30	13.1
5	700	90	16.0

Requirements:

1. Select the projects that maximize NPV within the budget.
2. Calculate the total investment.
3. Determine the total NPV of selected projects.
4. Discuss the opportunity cost of capital for the selected projects.