Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 14

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, and c) the PW method.