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Been working on this problem for awhile and am really struggling. Any help would be greatly appreciated. Thx! Marvelous Manufacturing (MM) generated the following information

Been working on this problem for awhile and am really struggling. Any help would be greatly appreciated. Thx!

Marvelous Manufacturing (MM) generated the following information for its capital budgeting manager:

Capital Structure

Project Cost IRRType of CapitalProportion

W $65,00015%Debt30%

X70,00013 Common equity70

Y75,00012

Z70,00011

MM's weighted average cost of capital (WACC) is 12 percent if the firm does not have to issue new common equity; if new common equity is needed, its WACC is 16 percent. If MM expects to generate $70,000 in retained earnings this year, which project(s) should be purchased? Assume that the projects are independent and indivisible.

Only Project W should be purchased.

Projects W and X should be purchased.

Projects W, X, and Y should be purchased.

All of the projects should be purchased.

None of the projects should be purchased.

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