3. Problem 3 Chips USA is considering the following projects to improve its production process. Chips uses a three-year horizon for evaluation. (a) If Chips has a budget of $70,000, which projects should be done? (b) What is the opportunity cost of capital? Project Initial Cost Uniform Annual Benefit $25,000 $12,800 2 30,000 14,000 3 14,000 7,000 4 5,000 2,400 5 22,000 10,000 15,000 8,500 30,000 16,000