Managers of the Emerald Bay Furniture Company have gathered all of the capital investment proposals for the year, and they are ready to make their final selections. The following proposals and related rate-of-return amounts were received during the period:

Assume that the company's minimum rate of return is 15 percent and that $5,000,000 is available for capital investments during the year.
1. List the acceptable capital investment proposals in order of profitability.
2. Which proposals should be selected for this year?

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Amount of Invcstment Rate of Return (Percentage) Project AB S 450,000 500,000 654,000 800,000 320,000 240,000 180,000 400,000 560,000 1,200,000 1,600,000 19 28 12 32 23 18 16 26 14 GH MN OP QR uv 20