15-17: A factory has a capital budget of $220,000 and opportunity to do the projects described in the table below:

Project First Cost Annual Benefit Life (years) Salvage Value IRR

A $50,000 $12,000 4 $10,000

B $30,000 $10,000 3 $5,000

C $70,000 $15,000 6 $9,000

D $60,000 $30,000 2 $15,000

E $80,000 $13,000 7 $20,000

a)Complete the above table and determine which ones (if any) of the above projects should be funded.

Answer

b) What is the opportunity cost of capital?

Answer:<

Reasoning: