CHALLENGE Compute the internal rate of return for this project. 11. Imperial Systems has $1 million available for capital investments during the current year. A list of possible investment projects, together with their net investments and net present values, is provided in the following table: Project Net Investment Net Present Value $200,000 $20,000 2 500.000 41,000 275,000 60,000 150,000 5,000 5 250,000 20.000 6 100,000 4,000 7 275,000 22,000 200,000 -18,000 3 a. Rank the various investment projects in terms of their profitability indexes (computed to three decimal places). b. In the order of decreasing profitability index values and considering the capital constraints, which projects should be adopted? Are all capital funds expended? c. Is there another combination that produces a higher aggregate net present value than the one developed in Part b? d. If less than the entire amount of available funds is invested, what is the opportu- nity cost of the unused funds? 12. The L-S Mining Company is planning to open a new strip mine in western Penn- sylvania. The net investment required to open the mine is $10 million. Net cash LLENGE