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Marble Construction estimates that its WACC is 12% if equity comes from retained earnings. However, if the company issues new stock to raise new equity,

Marble Construction estimates that its WACC is 12% 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 12.9%. The company believes that it will exhaust its retained earnings at $2,700,000 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 $ 630,000 13.6 %
B 1,050,000 13.2
C 1,050,000 12.5
D 1,230,000 12.4
E 520,000 12.7
F 630,000 13.7
G 730,000 13.5

What is the firm's optimal capital budget? Round your answer to the nearest dollar.

$

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