"X"Company, is confronted with six projects competing for its fixed budget $250.000 the initial investment and IRR for each project are as follows:
Project
Initial Investment
IRR
Present Value of cash inflow at 10%
A
$ 80,000
12%
100,000
B
70,000
20%
112,000
C
100,000
16%
145,000
D
40,000
8%
36,000
E
60,000
15%
79,000
F
110,000
11%
126,500
Knowing that the firm cost of capital is 10%
REQUIRED
Recommend the company which project should be acceptable according to IRR approach; discuss the rational of using the IRR method.