1.(a) Rohand Pollok Company is considering three investments whose initial costs and interna rates of return are given below: Project Initial Cost ($) Internal Rate of Return (%) A 100,000 19 B 15 125,000 225,000 12 The company finances all expansion with 40% debt and 60% equity capital. The after tax cost is S percent for the first $100,000, after which the cost will be 10%. A Retained earnings in the amount of $150,000 is available, and the common stock holders' required rate of return is 18 percent. If the new stock is issued, the cost will be 22%. Graph the firm's weighted marginal cost of capital (MCC) schedule and decide which projects be selected and calculate the total amount of the optimal budget