What is the opportunity cost of capital

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Reference no: EM131928142

Intel is considering the following projects (shown in the table below) to improve their production processes.

Chips have a short life, so a 3-year horizon is used in evaluation. Which project(s) should be done if the budget is $70,000?

What is the opportunity cost of capital?

You must state here the rate of return of each project (in percent to 2 decimal places, e.g. 4.47% or 25.61%).

Project	First Cost	Benefit
1	$20,000	$11,000
2	$30,000	$14,000
3	$10,000	$6,000
4	$5,000	$2,400
5	$25,000	$13,000
6	$15,000	$7,000
7	$40,000	$21,000

Selected project(s): ______________

Opportunity cost of capital: ________

What are the IRRs for each Project?

Reference no: EM131928142

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