Mountain Water Inc. has $20 million to invest and is looking at three projects. The company's hurdle rate is 14%. Project A's initial investment is $13 million and the cash flow over four years is $1 million, $2 million, $8 million, and $10 million, respectively. Project B's initial investment is $17 million and cash flow over the same period is $10 million, $7 million, $4 million and $4 million. Project C's initial investment is $18 million and its cash flow is $2 million, $10 million, $9 million, and $7 million, respectively. The projects are indivisible and the internal rate of returns of the three projects are 15.99%, 19.83%, and 17.91%. Idle cash earns no return. Because La Verendrye cannot undertake all three projects, what is their best investment decision?

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The Answer of Mountain Water Inc. has $20 million to invest and is looking at three projects. The company's hurdle rate is 14%. Project A's initial investment is $13 million and the cash flow over four years is $1 million, $2 million, $8 million, and $10 million, respectively. Project B's initial investment is $17 million and cash flow over the same period is $10 million, $7 million, $4 million and $4 million. Project C's initial investment is $18 million and its cash flow is $2 million, $10 million, $9 million, and $7 million, respectively. The projects are indivisible and the internal rate of returns of the three projects are 15.99%, 19.83%, and 17.91%. Idle cash earns no return. Because La Verendrye cannot undertake all three projects, what is their best investment decision?