ed Cliff Corp is contemplating investing in a series of projects. The maximum total capital allocated for all projects is $800, 000. The manager of Red Cliff has hired you to rank the projects that Red Cliff Corp should invest in. You are provided with the following information. Rank the project in the order that Red Cliff Corp should invest in and provide your reasons clearly. What is your comment on the IRRs of the projects?

Projects Profitability index IRR Year 0 investments Projects A 1.09 11% $500,000 Projects B 0.85 8.5% $400,000 Projects C 1.21 10.5% $750,000 Projects D 0.78 7% $400,000