Really struggling with this question. Any help is greatly appreciated. Thx so much!

Marvelous Manufacturing (MM) generated the following information for its capital budgeting manager:

Capital Structure

ProjectCost IRRType of CapitalProportion

W $65,00015%Debt 30%

X70,00013Common equity 70

Y75,00012

Z70,00011

MM's weighted average cost of capital (WACC) is 12 percent if the firm does not have to issue new common equity; if new common equity is needed, its WACC is 16 percent. If MM expects to generate $70,000 in retained earnings this year, which project(s) should be purchased? Assume that the projects are independent and indivisible.

Only Project W should be purchased.

Projects W and X should be purchased.

Projects W, X, and Y should be purchased.

All of the projects should be purchased.

None of the projects should be purchased.