iege Systems is considering the following independent projects for the coming year:

Project	Required Investment	Rate of Return	Risk
A	$4 million	11.75%	High
B	5 million	14.25	High
C	3 million	9.75	Low
D	2 million	9.25	Average
E	6 million	12.75	High
F	5 million	12.75	Average
G	6 million	7.25	Low
H	3 million	11.75	Low

Ziege's WACC is 10.25%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects.

1. Which projects should Ziege accept if it faces no capital constraints?

   Project A	-Select-
   Project B	-Select-
   Project C	-Select-
   Project D	-Select-
   Project E	-Select-
   Project F	-Select-
   Project G	-Select-
   Project H	-Select-

2. If Ziege can only invest a total of $13 million, which projects should it accept?

   Project A	-Select-AcceptRejectItem 9
   Project B	-Select-AcceptRejectItem 10
   Project C	-Select-
   Project D	-Select-
   Project E	-Select-
   Project F	-Select-
   Project G	-Select-
   Project H	-Select-

   If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.

   $ million

3. Suppose Ziege can raise additional funds beyond the $13 million, but each new increment (or partial increment) of $5 million of new capital will cause the WACC to increase by 1%. Assuming that Ziege uses the same method of risk adjustment, which projects should it now accept?

   Project A	-Select-
   Project B	-Select-
   Project C	-Select-
   Project D	-Select-
   Project E	-Select-
   Project F	-Select-
   Project G	-Select-
   Project H	-Select-

   What would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places.

   $ million