Derby Co can raise new capital up to $10 million at WACC of 15%.Above that the WACC would go up to 18%.It has two new independent projects X and Y that require investments of $8 million each.X and Y have IRRs of 17% and 20% respectively.Which of the following statements is true?

a)Derby's capital budget is $16 million.

b)Derby should undertake both projects X and Y

c)Derby's capital budget is $10 million

d)Derby should accept only Project Y