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Homework must be summitted in excel. Please provide answers on how they would be entered in excel. Thank you. 13-2 OPTIMAL CAPITAL BUDGET Marble Construction

Homework must be summitted in excel. Please provide answers on how they would be entered in excel. Thank you. image text in transcribed
13-2 OPTIMAL CAPITAL BUDGET 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 10.8%. The company believes that it will exhaust its retained earnings at $2,500,000 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 14.0% B 13.5 11.2 A $ 650,000 1,050,000 1,000,000 D 1,200,000 11.0 E 500,000 10.7 F 650,000 10.3 700,000 10.2 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, and what is the firm's optimal capital budget

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