Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 6

The five independent projects shown below are under consideration for implementation by KNF Neuber- ger, Inc. The company's MARR is 15% per year.
a) Determine which projects should be undertaken on the basis of IROR if the budget limitation is $97,000. (Solve by hand or spreadsheet as instructed.)
b) Determine the overall rate of return if the money not invested in projects is assumed to earn a rate of return equal to the MARR.