An engineer at Delphi Systems is considering the projects below, all of which can be considered to last indefinitely. The company's MARR is 13% per year.
(a) Determine which projects should be selected on the basis of IROR if the budget limitation is $39,000.
(b) What is the overall rate of return if the money not invested in projects is assumed to earn a rate of return equal to theMARR?

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Net Income, Rte of First Cost, $ $per Year 4,000 1,900 2,600 10,000 6,000 Return, % 20.0 19.0 17.3 14.3 12.0 Project 一20,000 -10,000 一15.000 -70,000 -50,000