Using the NPV index approach to ranking projects, which projects should the firm accept? * A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of P1,000,000; the firm's cost o capital is 15 percent. Project Initial investment P200,000 400,000 250,000 200,000 150,000 400,000 IRR 19% 17 16 12 20 15 NPV P100,000 20,000 60,000 -5,000 50,000 150,000 4 5 O 1, 6, 5 and 3 O 1, 2, 3, and 5 O 2, 3, 4, and 6 O 1, 3, 4, and 6

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