1. Problem 12.17 (Optimal Capital Budget) eBook Hampton Manufacturing estimates that is WACC IN 12.5%. The company is considering the following wven investment projects: Project Size TRR $ 650,000 13.7 1,000,000 13.2 1,000,000 12.9 D 1,100,000 12.7 E 800,000 12.6 F 800,000 12.2 G 750,000 11.9 8. 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 Project Project D -Set Project E Select Project F Select Project G v What is the firm's optimal capital budget? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the bearest dolar 5 What is the home optimal coital budget> write out your answer completely. For example, 13 million should be entered as 13,000,000. Hound your answer to the nearest collar, b. Now, assume that Projects C and D are mutually exclusive. Project D has an NPV of 6350,000, whereas Project Chas an NPV of 100,000. Which set of projects should be compted v Select -Select Project A Project Project Project D Project E Project Project v v What is the firm's optimal capital budget in this case? Write out your answer completely. For example, 13 milion should be entered as :3,000,000. Round your answer to the rest dolar $ c.Ignore previous part, and now assume that each of the projects is independent but that management decides to incorporate project risk differentials. Management judges Projects B, C, D, and to have average risk, Project to have high risk and Projects F and G to have low risk. The company adds 2% to the WACC of those projects that are significantly more nisky than average, and it subtracts from the WACC for those that are substantially less risky than average. Which set of projects should be accepted? Project A Project Project Project D Project E Project F Project G What is the firm's optimal capital budget in this case? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar 5