Consider the following list of projects:
You are given a budget of only $1,800,000 to invest in projects.Which projects will you select,in what order will you select them,and why?
Definitions:
Compounded Monthly
The process of calculating interest on an investment monthly and adding it to the principal, resulting in interest earned on the previous interest.
Ordinary Annuity
An annuity in which the payments are made at the end of each payment interval.
Monthly Payments
Regular payments made every month, often in the context of loans or leases, to repay borrowed money plus interest.
Compounded Annually
The process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.
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