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  3. please help asap 4. problem 12.05 (optimal cap

please help asap 4. Problem 12.05 (Optimal Capital Budget) eBook Marble...

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Accounting

please help asap
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4. Problem 12.05 (Optimal Capital Budget) eBook Marble Construction estimates that its WACC is 12% if equity comes from retained earnings. However, if the company issues new stock to raise new equity, it estimates that its WACC will rise to 12.7%. The company believes that it will exhaust its retained earnings at $2,400,000 of capital due to the number of highly profitable projects available to the firm and its limited earnings. The company is considering the following seven investment projects: Project Size IRR $ 680,000 14.4% 1,000,000 980,000 1,150,000 13.1 510,000 12.9 680,000 11.9 G 660,000 12.1 Assume that each of these projects is independ and that each is just as risky as the firm's existing assets. Which set of projects should be accepted? A B 13.3 12.4 D E F -Select- -Select- -Select Project A Project B Project Project D Project E Project F Project G Select- Select Select Select v What is the firm's optimal capital budget? Round your answer to the nearest dollar $

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