I NEED HELP WITH QUESTION NUMBER 3. I HAVE ATTACHED MY ANSWERS AT THE BOTTEM I JUST NEED HELP WRITTING THE EMAIL!!!!!

Galaxy Satellite Co. (120 Points)

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.

Project	PV of Inflows	Initial Investment		IRR
A	$3,050,000	$3,000,000		21%
B	$9,320,000	$9,000,000		25%
C	$1,060,000	$1,000,000		24%
D	$7,350,000	$7,000,000		23%

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%.)

3. Which projects should the firm implement based on your analysis of both techniques and given the capital rationing amount? Write an email to your boss, Andy Fast, the CFO, explaining your rationale proving the choices based on the considerations of shareholder value and the maximum investment budget. Keep in mind that you are less concerned with using the whole budget than with maximizing the total return to Galaxy satellite.

BELLOW I HAVE ATTACHED WHAT I HAVE SO FAR.

roject	PV of inflows	Initial investment	NPV=(PV-initial investment	IRR
A	3050000	3000000	50000.00	21%
B	9320000	9000000.00	320000.00	25%
C	1060000	1000000.00	60000.00	24%
D	7350000	7000000.00	350000.00	23%

1. Using NPV approach, Projects B and D are the best group of projects since the NPV is higher.

2. Using IRR approach, projects B and C are the best group of projects since the IRR is higher.

3. Considering both the techniques projects C & D can be implemented, since they require lower initial investment, and the return is higher for every unit of investment.