Attempts Keep the Highest / 10 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 WACC will rise to 9.6%. 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 camings. The company is considering the foliowing seven Investment projects: Project Size IRR $ 610,000 13.79 1,010,000 13.8 1.040,000 10.0 1,150,000 9.3 540,000 9.5 F 610,000 9.0 G 650,000 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 B Project Project Project Project F Project G -Select- -Select -Select- -Select- Select -Select- -Select- + What is the firm's optimal capital budget? Round your answer to the nearest dollar, $