Table 10.5
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. 
-Use the IRR approach to select the best group of projects, if the required rate of return is 23.5%. (See Table 10.5)
Definitions:
Process Costing
A method of costing used for homogenous products, where it calculates the cost of each process or stage of production.
FIFO Method
A method of inventory valuation where the oldest items are sold first, standing for "First In, First Out."
Conversion Costs
The combined costs of direct labor and manufacturing overhead used to convert raw materials into finished products.
FIFO Method
A method of inventory valuation that assumes the first items placed in inventory are the first sold, hence, the cost of the oldest inventory is used to determine the cost of goods sold.
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Q97: Which projects should the firm implement? (See