What five separate projects have calculated rates of return

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Five separate projects have calculated rates of return of 7, 11, 15, 18, and 20 percent per year. An engineer wants to know which projects to accept on the basis of the rate of return. She learns from the finance department that company funds which have a cost of capital of 16% per year are used to fund 30% of all capital projects. Later, she is told that borrowing money is currently costing 10 percent per year. If the MARR is established at exactly the weighted average cost of capital, which projects should she accept?

Reference no: EM13235984

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