Chips USA is considering the following projectsto improve

Chapter , Problem 15-16

(choose chapter or problem)

Chips USA is considering the following projectsto improve their production process. Chips have ashort life, so a 3-year horizon is used in evaluation.Which projects should be done if the budget is$70,000? What is the opportunity cost of capital?ProjecFirst Cost Benefit1 $20,000 $11,0002 30,000 14,0003 10,000 6,00045,0002,4005 25,000 13,0006 15,000 7,0007 40,000 21,000

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