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Hampton Manufacturing estimates that its WACC is 12.5%. The company is considering the following seven investment projects Project Size $750,000 1,250,000 1,250,000 1,250,000 750,000 750,000

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Hampton Manufacturing estimates that its WACC is 12.5%. The company is considering the following seven investment projects Project Size $750,000 1,250,000 1,250,000 1,250,000 750,000 750,000 750,000 IRR 14.0% 13.5 13.2 13.0 12.7 12.3 12.2 a. 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 Project B Project C Project D Project E Project F Project G What is the firm's optimal capital budget? Write out your answer completely. For example, 13 million should be entered as 13,000,000 Select- -Select

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