Marble Construction estimates that its WACC is 10% if equity comes from retained earnings. However, the company issues new stock to a new equity, it estimates that it WACC will rise to 10.8%. The company believes that it will exhaust its retained earnings at $2,500,000 of capital due to the number of highly profitable projects will to the form and its limited earnings. The company is considering the following seven investment projects: Project Size IRR $650,000 14.0% B 1,050,000 13.5 1,000,000 11.2. D 1,200,000 11.0 E 500,000 10.7 F 650,000 10.3 G 700,000 10.2 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 -Select Project B Accept Don't accept Project Project D -Select- Project E Project F -Select- Project G -Select- What is the firm's optimal capital budget? Write out your answer completely. For example, 13 million should be entered as 13,000,000 OPTIMAL CAPITAL BUDGET Marble Construction estimates that its WACC is 10% 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 10.8%. The company believes that it will exhaust its retained earnings at $2,500,000 of capital due to the number of highly profitable projects available to the form and its limited earnings. The company is considering the following seven investment projects: Project Size IRR $650,000 14,0% 1,050,000 13.5 1,000,000 11.2. D 1,200,000 E 500,000 10.7 F 650,000 10.3 G 700,000 10.2 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 Accept Project B Don't accept Project Project D -Select- Project Select Project F -Select Project G Select What is the firm's optimal capital budget? Write out your answer completely. For example, 13 million should be entered as 13,000,000 et v