Capital rationing-NPV approach A firm with a 12.1% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1.20 million. Project Initial investment NPV at 12.1% cost of capital A $400,000 $87,000 BCDEFC - 400,000 8,000 - 200,000 18,000 - 700,000 83,000 - 500,000 72,000 - 100,000 54,000 G - 700,000 152,000 a. Calculate the present value of cash inflows associated with each project. D The present value of cash inflows for project A is $ (Round to the nearest dollar.)