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Marble Construction estimates that its WACC is 10% 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 10.6%. 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:

Project	Size			IRR
A		$ 620,000		13.7	%
B		1,070,000		13.8
C		960,000		11.0
D		1,240,000		10.4
E		500,000		10.7
F		620,000		9.9
G		730,000		10.0

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- accept- don't accept
Project B	-Select-accept-don't accept
Project C	-Select-accept-don't accept
Project D	-Select-accept-don't accept
Project E	-Select-accept-don't accept
Project F	-Select-accept-don't accept
Project G	-Select-accept-don't accept

What is the firm's optimal capital budget? Round your answer to the nearest dollar.

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