_83.

The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firms cost of capital is 10 percent. It will only invest $78,600 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	10,900			12	%
B		30,900			16
C		25,900			15
D		10,900			20
E		10,900			18
F		20,900			13
G		15,900			11

a. Pick out the projects that the firm should accept. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Project F
	Project A
	Project B
	Project E
	Project D
	Project G
	Project C

b. If Projects D and E are mutually exclusive, which projects would you accept in spending the $78,600? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Project A
	Project E
	Project B
	Project F
	Project D
	Project G
	Project C