A firm has a capital budget of \($111,000\) and is considering three potential independent projects:

Project A requires investing \($44,400\) today and yields \($15,840\) per year for five consecutive years.

Project B requires investing \($37,000\) today and yields \($15,481\) per year for five consecutive years.

Project C requires investing \($62,900\) today and yields \($21,467\) per year for ten consecutive years.

Money not allocated to the projects can be placed in a bank deposit that gives 15 percent per year.

a. Identify the six combinations of project investments such that the budget is exhausted.

b. Which of the six combinations should the firm choose if the discount rate is:

1. 15 percent 2. 20 percent