The Acme Chip Manufacturing Company $($potato not computer$)$ has a target capital structure of $30\%$ debt and $70\%$ common equity. They also have a $30\%$ tax rate. $($HINT: you need this to calculate the "after$-$tax" cost of debt!$)$They have three independent projects under consideration, code named: Manny, Moe, and Jack. The IRRs for the three projects:Manny: $15\%$Moe: $12\%$Jack: $10\%$All three projects have an initial investment of $$1,000,000.$ Acme can borrrow up to $$2,000,000$ from the bank at a quoted interest rate $($the "before$-$tax" cost of debt$)$ of $6\%.$ They also have a reported $$3,000,000$ in Retained Earnings available for new projects.Additional information: The next common stock dividend they pay will be $$3\mathrm{.}00$ per share. They also expect a growth rate of $5\%$ on common equity. New common stock can be sold for $$30\mathrm{.}00$ per share, with flotation costs of $$10\mathrm{.}00$ per share.$($Remember it's always cheaper to use retained earnings than issuing new common stock, and as long as Acme has retained earnings to use you don't have to sell new common stock $($as is true for Part $1$ question$).$Part One:a$.$ Which projects would you accept and why?b$.$ What would be your capital budget?Part $2$: The federal government has decided to increase the regulations affecting the manufacturing of chips. Complying with these new regulations will cost Acme $$3$ million, wiping out their retained earnings.a$.$ Which projects would you accept and why?b$.$ What would be their capital budget now?