Capital rationing—NPV approach A firm with a 13% cost of capital must select the optimal g...

Capital rationing—NPV approach A firm with a 13% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1 million.

a. Calculate the present value of cash inflows associated with each project.

---

b. Select the optimal group of projects, keeping in mind that unused funds are costly.