Calculate the return on investment (ROI) for the following five projects, total cost includes the initial investment. Which projects should be invested in if the organization has a spending constraint of $7,000,000 and its cost of capital is 6%?
Total Total
Project Investment Revenue Cost Profit ROI
A $3,000,000 $5,500,000 $5,000,000 _____ _____
B $2,400,000 $4,000,000 $3,800,000 _____ _____
C $1,350,000 $2,400,000 $2,300,000 _____ _____
D $1,500,000 $3,200,000 $3,000,000 _____ _____
E $2,000,000 $3,800,000 $3,700,000 _____ _____