The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm€™s cost of capital is 10 percent. It will only invest $77,000 this year. It has determined the internal rate of return for each of the following projects.

a. Pick out the projects that the firm should accept.
b. If Projects A and B are mutually exclusive, how would that affect your overall answer? That is, which projects would you accept in spending the$77,000?

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Internal Rate of Return 2190 Project Size S10,500 30,500 25,500 10,500 10,500 20,500 10,500 Project 18 13 20 16