Zelolo Corp. has the following capital investment requests pending from its three divisions: Request 1, $60,000, 11
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Zelolo Corp. has the following capital investment requests pending from its three divisions: Request 1, $60,000, 11 percent projected return; Request 2, $110,000, 14 percent projected return; Request 3, $130,000, 16 percent projected return; Request 4, $160,000, 13 percent projected return; Request 5, $175,000, 12 percent projected return; and Request 6, $230,000, 15 percent projected return. Zelolo’s minimum rate of return is 13 percent, and $500,000 is available for capital investment this year. Which requests will be honored, and in what order?
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