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The Lusail Construction Company uses a process of capital rationing in its decision making. The firm's cost of capital is 13.50%. The company is considering

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The Lusail Construction Company uses a process of capital rationing in its decision making. The firm's cost of capital is 13.50%. The company is considering various projects and has determined the size and internal rate of return (IRR) for each project as follows: Project A B D Project Size ($) 23,000 35,000 19,000 24,000 20,000 18,000 25,000 IRR 16.0% 18.0% 13.8% 16.8% 10.0% 13.0% 19.0% E F G Which of the above projects are acceptable based on the Internal Rate of Return (IRR)? How much capital would the company require to accept all investments that meet or exceed the hurdle rate? How much capital would the company require to accept all investments that meet or exceed the hurdle rate? If capital expenditure is limited to $110,000 (capital rationing) for the next year, what projects should the company accept? If projects B and G are mutually exclusive (I.e. the company cannot invest in both), would that change the projects that should be accepted? (Yes or No) If projects should change, list the projects that should be accepted

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