Capital rationing-IRR and NPV approaches Valley Corporation is attempting to select the best of a group of independent projects competing for the firm's fixed capital budget of S4.77 million. The firm recognizes that any unused portion o this budget will earn less than its 16% cost of capital, thereby resulting in a presen value of nflows that is less than the initial investment. The firm has summarized n te ollowing table, the key data to be used in selecting the best group of projects IRR Initial Investment S5,270,000 875,000 2,300,000 1.725,000 875,000 2,470,000 1,425,000 Present value of inflows at 16% 18% 19 20 17 23 24 21 $5,670,000 1.175,000 2.600,000 1,825,000 975,000 2,970,000 1,525,000 a. Use the internal rate of return (IRR) approach to select the best group of projects b. Use the net present value (NPV) approach to select the best group of projects. c. Compare, contrast, and discuss your findings in parts (a) and (b). d. Which projects should the firm implement? Why? a. Using the internal rate of return (IRR) approach, the best group of projects to select is b. Use the net present value (NPV) approach to select the best group of projects c. Compare, contrast, and discuss your findings in parts (a) and (b). (Select the best answer below.) V. (Select from the drop-down menu.) (Selec from the drop-down menu.) c. Compare, contrast, and discuss your tindings in parts (a) and (b). (Select the best answer below O A. O B. O C. 0 D. Since the IRR approach maximizes shareholder wealth, it is the superior method. Since the NPV approach maximizes shareholder wealth, it is the superior method. Since the IRR approach maximizes the rate of return, it is the superior method. Since the NPV approach maximizes the rate of return, it is the superior method