Raymond Manufacturing is considering the following capital projects. The internal rate of return (IRR) has been calculated for each project. IRR Project Cost (Millions of dollars) $40 A 11.6% B $40 11.2% $80 10.896 The optimal capital budget (OCB) is the budget size that maximizes the firm's wealth given the opportunities for investment and the cost of capital Raymond's managers have plotted the marginal cost of capital (MCC) schedule to reflect how the cost of capital increases as new capital is raised Assume that the proposed projects are independent and equally risky and that their risks are equal to Raymond's average existing assets. 120 + 11.1 OCD 110 114 VACCARR PERCENT) 110 108 Refer to the preceding graph, and place the black point (plus symbol) at the point that represents the OC to find the answer What is Raymond Manufacturing's optimal capital budget? $120.0 million $90.0 million $100.0 million $80.0 million What is the company's welghted average cost of capital (WACC) at the optimal capital budget? 10.8% 12.0% 11,6% 11.0%