National Motors's Rock Creek plant is considering the following projects to improve the company's production process. Which projects should be done if the budget is $500,000? What is the opportunity cost of capital?

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Annual Life Project First Cost Benefit (years) $200,000 300,000 100.000 50,000 250,000 150,000 400,000 $50,000 70.000 40,000 12,500 75,000 32,000 125,000