Question: please help to answer this question 9. Optimal capital budget Bryant Manufacturing is considering the following capital projects. The internal rate of return (IRR) has


9. Optimal capital budget Bryant Manufacturing is considering the following capital projects. The internal rate of return (IRR) has been calculated for each project. The optimal capital budget (OCB) is the budget size that maximizes the firm's wealth given the opportunitles for investment and the cost of capital Bryant's managers have plotted the marginal cost of capital (MCC) schedule to reflect how the cont of capital increases as new capital is raised. Assume that the proposed projects are independent and equally risky and that their risks are equal to Bryant's overage exigting assats: Assignment: Chapter 11 Cost of Capital Refer to the preceding graph, and place the black point (plus symbol) at the point that represents the OCB to find the answer. What is Bryant Manufacturing's optimal capital budget? $100.0 million $120.0 million $90.0 miltion $80.0 million What is the company's weighted average cost of capital (WACC) at the optimal capital budget? 12.0% 10.8% 11.0% 11.6%
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