$3-24$ Your company is considering investing

in three projects with projected Operating

Income and Investment streams as shown

in the following table. Rank the three

projects by ROI, IRR, DROI, and AOEROR

assuming your investment opportunity rate

is $16\%$ and using mid$-$period discounting.

For calculating AOEROR use a common

terminal point for all projects at the end of

year $10.$

a$.$ If your company only has $$6$ million to

invest in one of these projects $($and

plenty of small projects that will return

$16\%$ on average$)$ which project do you

recommend?

b$.$ If your company finds some more money

and now has $$11$ million to invest $($and

plenty of small projects that will return

$16\%$ on average$)$ which project$($s$)$ do you

recommend?