• A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of​ $1,000,000; the​ firm's cost of capital is 15 percent. Please show the work. Project Initial Investment IRR NPV 1 $200,000 19% $100,000 2 400,000 17 20,000 3 250,000 16 60,000 4 200,000 12 -5,000 5 150,000 20 50,000 6 400,000 15 150,000 Using the internal rate of return approach to ranking projects, which projects should the firm accept? Using the net present value approach to ranking projects, which projects should the firm accept?

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