The CFO for Woodsome Appliance Company Plant #A14 in Mexico City has five independent projects she can fund this year to improve surface durability on stainless steel products. The project investments and 18%-per-year PW values are as shown. What projects should be accepted if the investment limit is (a) no limit, and (b) $55,000? Initial PW at 18% Project Investment, $ per Year, $ 1 −15,000 −400 2 −25,000 8500 3 −20,000 500 4 −40,000 −5600 5 −52,000 9800

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The CFO for Woodsome Appliance Company
Plant #A14 in Mexico City has five independent
projects she can fund this year to improve surface
durability on stainless steel products. The project
investments and 18%-per-year PW values are as
shown. What projects should be accepted if the investment
limit is (a) no limit, and (b) $55,000?
Initial PW at 18%
Project Investment, $ per Year, $
1 −15,000 −400
2 −25,000 8500
3 −20,000 500
4 −40,000 −5600
5 −52,000 9800

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