35. Vang Enterprises, which is debt-free and finances only with equity from retained carnings, is considering 7 equal-sized capital budgeting projects. Its CFO hired you to assist in deciding whether none, some, or all of the projects should be accepted. You have the following information: TRF = 4.50% RPM=5.50%; and b =0.89. The company adds or subtracts a specified percentage to the corporate WACC when it evaluates projects that have above- or below-average risk. Data on the 7 projects are shown below. If these are the only projects under consideration, how large should the capital budget be? I Project 1 Risk Risk factor Very low -2.00% Low -1.00% Average 0.00% High 1.00% Very high 2.00% Very high 2.00% Very high 2.00% Expected return 7.60% 9.15% 10.10% 10.40% 10.80% 10.90% 13.00% Cost (millions) $25 S25 S25 S25 $25 S25 S25 4 MON a. S150 million b. $175 million c. $75 million d S100 million e. S125 million