Jetson Retreat Tyre (JRT) is evaluating next year investment opportunities and its cost of capital. JRT anticipate that if it could minimize the cost of capital, more feasible projects could be undertaken and also able to determine its capital budget for next year. Opportunities available are as follows: Rate of Initial Projects Return % Investment $ A 12.50 900,000 B 12.00 800,000 C 10.50 1,000,000 D 11.60 1,100,000 E 11.00 950,000 JRT has 10,000 bonds outstanding that were issued at par with 10 years to maturity. The bonds carry a coupon rate of 11%. Coupon payments are made semi-annually. Similar bonds are now selling to yield 9.5%. It issued 10,000 shares of 8% preferred stock at a $50 par value eight years ago. Those preferred shares are now selling to yield 9%. There are currently 5,000,000 of common stock outstanding selling for $4.50 a share. JRT's cost of equity is based on the following information: Risk-free rate (Krf) = 4% Market return (Km) =10% Beta () = 1.50 Assume common equity capital comes from retained earnings and tax rate is 30%. Using JRTs market value based capital structure, determines which project/s, if any, should be accepted. What is the total investment (in $) to be undertaken. Explain your decision making process.