The capital budgeting committee of the ABC Company is contemplating five independent proposals for projects to be included in the forthcoming year's budget; their cash flows are given in Table 9-13. The ABC Company has established a MARR of 20%. Assuming that capital is not rationed, which projects should the company select and what is the total investment required? Use the ROR method. Table 9-13 End of Year Project 1 Project 2 Project 3 Project 4 Project 5 0 -$100 000 -$200 000 -$150 000 - $80 000 -$300 000 1 35027 77 258 63516 32000 98 769 2 35 027 77 258 63516 32000 98 769 3 35027 77 258 63516 32000 98 769 4 35027 77 258 63516 32000 98769 = Ans. 15%, i* = 20%, i3 = 25%, i* = 21.85% (by interpolation), is = 12%. Projects 2, 3, and4 should be selected. at a total investment of $430 000.