Question: The six independent projects shown below are under consideration by Peyton Packing under budget-constrained conditions. The company always has more projects to engage in than

The six independent projects shown below are under consideration by Peyton Packing under budget-constrained conditions. The company always has more projects to engage in than it has capital to fund projects. Therefore, it uses a relatively high MARR of 25% per year. Since all projects are considered long-term ventures, the company uses an infinite period for their life. Determine which projects the company should fund and the total investment for a capital budget of $700,000 if the capital budgeting method used is
(a) The IROR method
(b) The PI method
(c) The PWmethod.
The six independent projects shown below are under consideration

Estimated Annual Income, $ per Year 54,000 21,000 115,000 205,000 26,000 2,100 Project First Cost, S -200,000 120.000 -250.000 370,000 -50,000 -9,000

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The IROR PI and PW values are shown below Sample calculations for project F are IROR 540002000... View full answer

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