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Marble Construction estimates that its WACC is 11% if equity comes from retained earnings. However, if the company issues new stock to raise new

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Marble Construction estimates that its WACC is 11% 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 11.9%. 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 $ 600,000 14.2% B 1,070,000 13.7 1,040,000 11.4 D 1,180,000 11.6 E 520,000 12.1 T 11.3 G 600,000 710,000 12.7 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 accept accept Project C don't accept Project D don't accept Project E accept don't accept v Project Project G What is the firm's optimal capital budget? Round your answer to the nearest dollar

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