You are in charge of one division of a company. Your division is subject to capital rationing. Your division has 4 indivisible projects available, detailed as follows:

Project Initial Outlay IRR

1 $2m 18%

2 $1m 15%

3 $1m 10%

4 $3m 9%

If you must select projects to a budget constraint of $5m, which set of projects should be accepted so as to maximize firm value?