Jose's company has a $200,000 capital budget and a 10% cost of capital. Which project(s) should he invest in? Explain.

Using Excel, calculate the accounting rate of return of the CNC machine assuming five-year useful life, zero salvage value, $30,000 annual cash flow, and 20% tax rate.

Thank you!

Project Cost IRR 3D Printer $50,000 10.5% Improved HVAC $35,000 9.0% Computer upgrade $40,000 21.4% Employee training $20,000 14.0% CNC Machine $100,000 15.2% Artwork $10,000 -10.0% 401(k) Matching $79,000 -100.0% Project Cost IRR 3D Printer $50,000 10.5% Improved HVAC $35,000 9.0% Computer upgrade $40,000 21.4% Employee training $20,000 14.0% CNC Machine $100,000 15.2% Artwork $10,000 -10.0% 401(k) Matching $79,000 -100.0%