The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firms cost of capital is 10 percent. It will only invest $61,800 this year. It has determined the internal rate of return for each of the following projects.

Project	Project size			Internal rate of return
A	$	11,700			13%
B		31,700			12
C		21,700			15
D		11,700			20
E		11,700			22
F		21,700			21
G		16,700			18

(a)

Pick out the projects that the firm should accept. (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.)

	Project C
	Project A
	Project D
	Project F
	Project E
	Project B
	Project G

(b)

If Projects E and F are mutually exclusive, which projects would you accept in spending $61,800? (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.)

	Project C
	Project A
	Project D
	Project B
	Project E
	Project F
	Project G