XYZ Ltd. is considering several investment projects. The company has $800,000 to invest. Each project has different initial costs, NPVs, and IRRs. The opportunity cost of capital is 10 percent. Analyze the following projects:

• Project A: Investment of $300,000; NPV of $40,000; IRR of 12%
• Project B: Investment of $250,000; NPV of -$5,000; IRR of 8%
• Project C: Investment of $150,000; NPV of $20,000; IRR of 11%
• Project D: Investment of $100,000; NPV of $10,000; IRR of 10%
• Project E: Investment of $200,000; NPV of $35,000; IRR of 13%

Requirements:

1. Identify which projects should be undertaken.
2. Calculate the total investment amount.
3. Compute the combined NPV of selected projects.
4. Evaluate the effectiveness of the IRR criterion.
5. Assess the impact of the opportunity cost of capital on project selection.