Five projects were ranked in decreasing order by two measures rate of return (ROR) and present worth (PW) to determine which ones should be funded, with the total initial investment not to exceed $18 million Use the results below to determine the opportunity cost for eachmeasure Ranking by ROR Ranking by PW Initial Cumulative Investment, PW at Cumulative ROR, 15 , Investment, Investment, Project $1000 $1000 Project $1000 Project $1000 A 44 5 7,138 8,000 12 8 1,162 C 20 4 1,051 8,000 8,000 13,000 21,000 36,000 44,000 8,000 16,000 21,000 29 000 44,000 15,000 E 9 6 863 8,000 5,000 E 26 0 936

Question: Five projects were ranked in decreasing order by two measures-rate of return (ROR) and present worth (PW)-to determine which ones should be funded, with the

Five projects were ranked in decreasing order by two measures-rate of return (ROR) and present worth (PW)-to determine which ones should be funded, with the total initial investment not to exceed $18 million. Use the results below to determine the for eachmeasure.

Ranking by ROR Ranking by PW Initial Cumulative Investment, PW at Cumulative ROR, 15%, Investment, Investment, Project % $1000 $1000 Project $1000 Project $1000 A 44.5 7,138 8,000 12.8-1,162 C 20.4 1,051 8,000 8,000 13,000 21,000 36,000 44,000 8,000 16,000 21,000 29.000 44,000 15,000 E 9.6-863 8,000 5,000 E 26.0 936

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