Jacobs Engineering Group Ltd. is in the process of determining its optimal capital budget for next...

  

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Jacobs Engineering Group Ltd. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Project ABCDEFG Required Investment $8 million 5 million 3 million 6 million 3 million 3 million 5 million The firm's marginal cost of capital schedule is as follows: Expected Rate of Return 18.0% 16.5% 16.0% 15.5% 14.5% 13.0% 12.5% Amount of Funds Raised $0 $12 million $12 million $20 million $20 million $28 million Over $28 million - Cost 13.5% 14.5% 15.5% 16.5% Determine Jacobs Engineering Group's optimal capital budget (in dollars) for the coming year. Jacobs Engineering Group Ltd. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Project ABCDEFG Required Investment $8 million 5 million 3 million 6 million 3 million 3 million 5 million The firm's marginal cost of capital schedule is as follows: Expected Rate of Return 18.0% 16.5% 16.0% 15.5% 14.5% 13.0% 12.5% Amount of Funds Raised $0 $12 million $12 million $20 million $20 million $28 million Over $28 million - Cost 13.5% 14.5% 15.5% 16.5% Determine Jacobs Engineering Group's optimal capital budget (in dollars) for the coming year.

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