Assume the projects are mutually exclusive. Note which projects you would take on at the following interest rates: 5.12%, 7.86%, 12.70%, 18.24%.

Next, assume that Projects 2 and 3 are not mutually exclusive, but the others are (i.e., you can take on either Project 1, Project 2, Project 3, Projects 2 and 3, Project 4, or Project 5). Note which projects you would take on at the following interest rates: 5.12%, 7.86%, 12.70%, 18.24%.

Project 1 Project 2 Project 3 Project 4 Project 5

Net Present Value 1363.87 5892.20 404.48 5057.36 5392.43

Interest rate: 7.98%