Coleman's director of capital budgeting has identified the following potential projects: Cash Flow IRR Project Cost Life A $700,000 5 years $218,795 17.0% B 500,000 5 152,705 16.0 B* 500,000 20 79,881 15.0 800,000 5 219,185 11.5 Projects B and B* are mutually exclusive, whereas the other projects are independent. All of the projects are equally risky. (1) Plot the IOS schedule on the same graph that contains your MCC schedule. What is the firm's marginal cost of capital for capital budgeting purposes? (2) What are the dollar size and the included projects in Coleman's optimal capital budget? Explain your answer fully. (3) Would Coleman's MCC schedule remain constant at 12.8% beyond $2 million regardless of the amount of capital required