The six independent projects shown below are under consideration by Peyton Packing under budget-constrained conditions. The company

Question:

The six independent projects shown below are under consideration by Peyton Packing under budget-constrained conditions. The company always has more projects to engage in than it has capital to fund projects. Therefore, it uses a relatively high of 25% per year. Since all projects are considered long-term ventures, the company uses an infinite period for their life. Determine which projects the company should fund and the total investment for a capital budget of $700,000 if the method used is
(a) The IROR method
(b) The PI method
(c) The PWmethod.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...