Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm’s fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.ProjectPV of InflowsInitial InvestmentIRRA$3,050,000$3,000,00021%B$9,320,000$9,000,00025%C$1,060,000$1,000,00024%D$7,350,000$7,000,00023%Use the NPV approach to select the best group of projects. (Note that just the PV of inflows is given, you must subtract the initial investment to find the NPV.)
Use the IRR approach to select the best group of projects. (Note that the discount rate or the cost of capital is 20%.)
Keep in mind that you are less concerned with using the whole budget than with maximizing the total return to Galaxy satellite.
Requirements:Submit your response in a Word document, showing all your calculations.Be in APA Format with references and in-text citations.
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