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Marble Construction estimates that its WACC is 8% if equity comes from retained earnings. However, if the company issues new stock to raise new equity,

Marble Construction estimates that its WACC is 8% 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 8.9%. 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
A $ 700,000 14.3 %
B 1,020,000 13.2
C 950,000 9.3
D 1,180,000 9.4
E 460,000 8.7
F 700,000 8.3
G 670,000 8.2

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?

Project A -accept or not
Project B -accept or not
Project C -accept or not
Project D accept or not
Project E -accept or not
Project F -accept or not
Project G accept or not

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

$

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