Adjusting cost of capital for risk

Ziege Systems is considering the following independent projects for the coming year.

Project	Required Investment	Rate of Return	Risk
A	$4 million	13.5%	High
B	5 million	11	High
C	3 million	9	Low
D	2 million	8.75	Average
E	6 million	12	High
F	5 million	12	Average
G	6 million	6.75	Low
H	3 million	11	Low

Ziege's WACC is 9.50%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects.

1)If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Round your answer to two decimal places. Enter your answer in millions.

$ million

2) What would be the dollar size of its capital budget? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55.

$ million