Attempts Keep the Highest/8 4. Problem 12.05 (Optimal Capital Budget) eBook Marble Construction estimates that its WACC is 8% if equity comes from retained earnings. However, if the company issues new stock to raise new equity, it estimates that its WACC will rise to 8.8%. The company believes that it will exhaust its retained earnings at $2,600,000 of capital due to the number of highly profitable projects available to the firm and its limited earnings. The company is considering the following seven investment projects: E ry Project Size IRR . $ 640,000 14.2% B 1,030,000 13.3 1,050,000 8.5 D 1,230,000 9.3 500,000 9.0 F 640,000 8.2 G 740,000 8.0 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 B Project C -Select- Project D -Select- Project E -Select- Project F -Select- Project G -Select- -Select- V y What is the firm's optimal capital budget? Round your answer to the nearest dollar. $ Grade it Now Save & Continue MacBook Pro