P12-20 Capital rationing: NPV approach A firm with a 13% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1 million. NPV at 13% Project Initial investment cost of capital anoneoup gniwollt sd C ABC -$300,000 $ 84,000 -200,000 10,000 -100,000 25,000 D V1-900,000 90,000 bidWVT to E -500,000 70,000 F -100,000 50,000 no G b-800,000 160,000 a. Calculate the present value of cash inflows associated with each project. b. Select the optimal group of projects, keeping in mind that unused funds are costly.