2. A company is evaluating three projects (Project A, Projects B, Project C). The managers expect at least 20% of Rate of Return. • Which project has the highest priority based on the return on investment? • Which of the projects are acceptable? If there is more than one project to be chosen, what should be the order of priority? Project C Investment Year Revenue Project A Project B Investment Year Revenue Investment Year Revenue S500,000 $250,000 $75,000 50,000 75,000 15,000 2 250,000 75,000 2 25,000 350,000 3. 75,000 3 50,000 4. 50,000 4 50,000 5 150,000

2. A company is evaluating three projects (Project A, Projects B, Project C). The managers expect at least 20% of Rate of Return. • Which project has the highest priority based on the return on investment? • Which of the projects are acceptable? If there is more than one project to be chosen, what should be the order of priority? Project C Investment Year Revenue Project A Project B Investment Year Revenue Investment Year Revenue S500,000 $250,000 $75,000 50,000 75,000 15,000 2 250,000 75,000 2 25,000 350,000 3. 75,000 3 50,000 4. 50,000 4 50,000 5 150,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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