Question 20 (5 marks):

The following table shows the appraisal characteristics of several mutually-exclusive projects which the management of Mokil Limited are considering.

Project	A	B	C	D	E
Initial Cost ($ millions)	78	92	119	97	94
Net Present Value ($ millions)	0	-1	11	10	7
Payback Period (Years)	2	7	5	5	3
Internal Rate of Return	9.5%	8.0%	13.2%	12.5%	11.7%

Managements stated goal is to maximise the wealth of the firms owners, and to be accepted any investment project must have a minimum investment yield of 10%.

Required:

Which of the above projects, if any, should be selected by management? Explain the rationale for your choice.