The contract offered by Taker Bros. is a favorable one, which Raleigh Soap plans to accept. Raleigh management has set a 15% before-tax minimum attractive rate of return as the criterion for any of the projects. Which projects should be undertaken? Ten capital spending proposals have been made to the budget committee as the members prepare the annual budget for their firm. Each independent project has a 5-: .life and no salvage value.

(a) Sed on a MARR of 14%, which projects should be approved?

(b) Rank orders all the projects in order of desirability.

(c) If only $85,000 is available, which projects should be approved?

Uniform Annual Computed Initial Cost Benefit Rate of Project (thousands) (thousands) $2.98 Return 15% 5.58 15 25 1.53 16 20 5.55 12 15 30 25 4.37 14 9.81 7.81 19 17 22 10 3.49 1.67 20 10 3.20 18