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11. Firm FM 349 Co. must choose from six investment proposals outlined below. The firm is subject to capital rationing and has a capital budget of only $1,000,000. Cost of capital is 15%. Ignore the financial impact of unused capital. Risk level of FM is 3 (1= low; 10 = highest). (5 Marks) Project Investment Payback (yrs) IRR NPV Risk Profile 1 9 2 4 2 4 3 4 $ 200,000 400,000 250,000 200,000 300,000 180,000 850,000 3 6 35% 17% 10% 15% 20% 28% 16% 60,000 70,000 (12,000) 0 60,000 42,000 100,000 1 2 3 5 6 5 3 8 7 4 4 In which project or project(s) should the firm invest? List the projects in order of priority and explain the key reason(s) for the selection