Problem
Acme Engineering is evaluating 10 projects for next year's capital budget investments. Their corporate MARR is set at 12% and all projects have a 10-year life:
|
Project
|
Initial Cost (thousands)
|
Annual Benefit (thousands)
|
|
1
|
$50
|
$10.3
|
|
2
|
$150
|
$32.2
|
|
3
|
$100
|
$17.7
|
|
4
|
$300
|
$48.8
|
|
5
|
$50
|
$11.9
|
|
6
|
$200
|
$38.3
|
|
7
|
$50
|
$10.0
|
|
8
|
$200
|
$36.9
|
|
9
|
$50
|
$11.5
|
|
10
|
$100
|
$22.3
|
1. Calculate the IRR for every project
2. If money is not a problem which projects should be approved?
3. Rank order all the acceptable projects according to IRR
4. If only $450,00 is available for the budget which projects should be approved?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.