The firm's weighted marginal cost of capital schedule is 12 percent for up to $6 million of investment; 16 percent for between $6 million and $18 million of investment; and above $18 million the wieghted cost of captial is 18 percent. The optimal capital budget is A. 23 milllion B. 28 million C. $12 million D. $18 million

Texas Transport has five possible investment projects for the coming year. Each project is indivisible. They are:

Project --- Investment (million) --- IRR

A --- $6 ---18%

B --- $10 --- 15%

C --- $9 --- 20%

D --- $4 ---12%

E --- $3 --- 24%