Selex Aerospace is considering five independentprojects to

Q:Selex Aerospace is considering five independent projects to improve net revenue asestimated below. (All estimates have been divided by $1000.) The company’s MARR is15% per year. Use a hand based solution and a spreadsheet-based analysis to determine thefollowing: (a) The projects that should be undertaken on the basis of IROR if theinvestment limit is $120,000. (b) The overall rate of return if the funds not invested in aproject earns at a rate of return equal to the MARR. Solution:Step 1Find IROR for each project, rank by decreasing IROR and then select projects within budgetconstraint of $120,000:Use the formula 12.6 given in the text(Engineering Economy-Leland Blank) to find IROR(a) The projects that should be undertaken on the basis of IROR if the investment limit is$120,000.For project X:0=-30000+9000(P/A,i*,10)Solving for i*,Thus,i=27.3%\nFor project Y:0=-15000+4900(P/A,i*,10)i=30.4%For project Z0=-45000+11100(P/A,i*,10)i=21%For project B0=-40000+10000(P/A,i*,10)i=21.4%For project A0=-70000+19000(P/A,i*,10)i=23.9%