Financial analysts for the Kolbe Mining Company are considering the following set of investments, which are not mutually exclusive. Each projects initial investment is $100,000.

Proposal Present Value of Future After-tax Cash Flows

1 $123,000

2 139,000

3 134,000

4 264,000

5 180,000

6 418,000

7 424,000

8 170,000

9 143,000

10 74,000

a. Which projects should the firm select if it has unlimited funds?

b. Which projects should the firm select if it must limit capital expenditures this year to $500,000?