Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 12

The DNA Corporation, a biotech engineering firm, has identified seven R D projects for funding. Each project is expected to be in the R D stage for three to five years. The IRR figures shown in Table represent the royalty income from selling the R D results to pharmaceutical companies.
DNA Corporation can raise only $100 million. DNA's borrowing rate is 18%, and its lending rate is 12%. Which R D projects should be included in the budget
TABLE 14