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The marginal cost of capital and investment opportunity schedules are below. What is the optimal capital budget, and what projects will be included in the

The marginal cost of capital and investment opportunity schedules are below. What is the optimal capital budget, and what projects will be included in the budget?

Investment Opportunities:

IRR Cost

Weighted Average Costs of Capital:

WACC = 9% up to $100,000 in projects WACC = 11% up to $225,000 in projects WACC = 13% thereafter

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