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5. The following investment opportunities are available to an investment center manager: Project Initial Investment Annual Earnings $800,000 $90,000 B 100,000 20,000 300,000 25,000 400,000

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5. The following investment opportunities are available to an investment center manager: Project Initial Investment Annual Earnings $800,000 $90,000 B 100,000 20,000 300,000 25,000 400,000 60,000 If the investment manager is currently making a return on investment (ROI) of 16 percent, which project(s) would the manager want to pursue? Assume annual earnings are before finance charges, and the manager is evaluated on ROI (return on investment). The cost of capital for the firm is 11%

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