Intel is considering the following projects (shown in the table below) to improve their production processes. Chips have a short life, so a 3-year horizon is used in evaluation. Which project(s) should be done if the budget is $70,000? What is the opportunity cost of capital? You must state here the rate of return of each project (in percent to 2 decimal places, e.g. 4.47% or 25.61%).

Selected project(s): ______________

Opportunity cost of capital: ________

What are the IRRs for each Project?

Project 1 2 First Cost $20,000 $30,000 $10,000 $5,000 $25,000 $15,000 $40,000 Benefit $11,000 $14,000 $6,000 $2,400 $13,000 $7,000 $21,000