The management of California Potato Industries (CPI) is planning next year's capital budget.The company's earnings and dividends are growing at a constant rate of 4.5%.The last dividend (DIV0) was $0.80; and the current equilibrium stock price is $6.55.CPI can raise new debt at a 11% before-tax cost.CPI is at its optimal capital structure which is 32% debt and 68% equity, and the firm's marginal tax rate is 40%.FCI has the following independent, indivisible, and equally risky investment opportunities.What is CPI's WACC and what is CPI's optimal capital budget? Explain

Project Cost Rate of Return

A -13,000 18%

B -12,000 17%

C -16,000 13%

D --26,000 12%