The acceptance of projects beginning with those having the greatest positive difference between IRR and the weighted average cost of capital, Ka, down to the point at which IRR just equals ka should result in the maximum total NPV for all independent projects accepted.

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This is known as the IRR ranking method, where projects are selected based on their IRRs in descending order until the point where the IRR equals the required rate of return (in this case, the weighted average cost of capital). This method results in the maximum total NPV for all independent projects accepted.

The Acceptance of Projects Beginning with Those Having the Greatest