Rand Corporation is considering five different investment opportunities. The company's cost of capital is 12 percent. Data on these opportunities under consideration are given below: Project 1 2 3 4 5 Investment ($) 35,000 20,000 25,000 10,000 9,000 PV at 12% ($) 39,325 22,930 27,453 10,854 8,749 NPV ($) 4,325 2,930 2,453 854 (251) IRR (%) 16 15 14 18 11 Profitability Index (2 d.p.) 1.12 1.15 1.10 1.09 0.97 Based on the data: (a) Rank these five projects in the descending order of preference, according to NPV, IRR and profitability index (or cost/benefit ratio). (6 mks) (b) Which ranking would you prefer? Explain your choice. (2 mks) (c) Based on your answer to part (b), which projects would you select if $55,000 is the limit to be spent? (2 mks)