Attempts 5 Keep the Highest 578 4. Problem 12.05 (Optimal Capital Budget) ebook Marble Construction estimates that its WACC is 9% if equity comes from retained earnings. However, if the company issues new stock to raise new equity, it estimates that its WA will rise to 9.6%. The company believes that it will exhaust its retained earnings at $2,300,000 of capital due to the number of highly profitable projects available to the firm and limited earnings. The company is considering the following seven investment projects: Project Size IRR $ 700,000 13.5% B 1,060,000 13.5 C 1,040,000 9.0 D 1,170,000 10.1 E 540,000 9.3 F 700,000 8.8 740,000 10.3 Assume that each of these projects is independent and that each is just as risky as the firm's existing assets. Which set of projects should be accepted? Project A Project Project Project Project E Project Project What is the firm's optimal capital budget? Round your answer to the nearest dollar