Hotel Amazing made a list of various independent projects it wants to launch with a fixed capital budget of $5.5 million. Management established that any unused portion of the fixed capital budget will earn less than the cost of capital of 12%. A summary of the independent projects are shown in the following table.

a. Select the best group of projects based on the IRR of the various projects.
b. Select the best group of projects based on the net present value (NPV) of the various projects.
c. Are the projects selected in parts a and b the same? Why or why not?
d. Which projects should Hotel Amazing implement?

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Project A B с D E F Initial investment $4,900,000 900,000 2,100,000 1,600,000 750,000 2,600,000 1,250,000 IRR 17% 19 18 15 20 19 21 PV of inflows at 12% $5,600,000 1,250,000 2,250,000 1,800,000 920,000 3,100,000 1,310,000