Question 25.25. Cranberry Industries, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: Required Expected Rate Project Investment of Return A $5 million 18.0% B 5 million 15.0% C 2 million 14.5% D 2 million 14.0% E 6 million 13.5% F 3 million 13.0% G 5 million 12.5% The firm's marginal cost of capital schedule is as follows: Amount of Funds Raised Cost $0 - $5 million 12.0% $5 million - $10 million 12.5% $10 million - $18 million 13.5% Over $18 million 15.0% (Points : 3.4)

14 million 17 million 20 million 28 million