Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.

Table 10.5

Project Initial Investment IRR PV of inflows at 20%

A $300,000 21% $3,050,000

B 900,000 25 9,320,000

C 1,000,000 24 1,060,000

D 7,000,000 23 7,350,000

Use the NPV approach to select the best group of projects. (See Table 10.5)