Newrock has identified the following capital projects for next year: Project Investment IRR ...

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Finance

Newrock has identified the following capital projects for next year:

Project Investment IRR

A $ 4.0 million 11.00%

B $ 3.6 million 10.50%

C $ 8.6 million 13.20%

D $ 2.0 million 8.70%

E $ 5.5 million 9.50%

F $ 5.0 million 7.20%

G $ 4.1 million 10.50%

H $ 6.4 million 8.00%

Projects A and B are mutually exclusive, as are Projects C and H. Use the IOS and the MCC graph to determine the ideal size of next years capital program.

Rank the projects by IRR in descending order as candidates, considering the mutually exclusive condition.

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