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 $80,600 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	11,400			20	%
B		31,400			22
C		26,400			12
D		11,400			14
E		11,400			16
F		21,400			19
G		16,400			17

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

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

b. If Projects A and B are mutually exclusive, which projects would you accept in spending the $80,600? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

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