HW-09 Chapter 9 & 12
14
Part 2 of 4
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Required information
For the five independent projects given, the capital budget limit is $120,000, the MARR is 10% per year, and all projects
have a 10-year life.
1.56
points
Project
First Cost, $
Net Income, $ per Year
IROR, %
PW at 10%, $
A
-18.000
4000
18.0
6578
B
-15,000
2800
13.3
2205
C
-35,000
12,600
34.1
42,422
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D
-60,000
13,000
17.3
19.879
E
-50,000
8000
9.6
-843
Hint
Ask
Rank and select from the independent projects using the IROR measure. Find the investment required for the selection.
References
Select projects C, A, and B
The investment is $