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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

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 $68,000 this year. It has determined the internal rate of return for each of the following projects.

Project Project Size Internal Rate of Return
A $ 12,000 11 %
B 17,000 13
C 27,000 16
D 12,000 15
E 12,000 19
F 22,000 12
G 17,000 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.)

b. If Projects E and G are mutually exclusive, which projects would you accept in spending the $68,000? (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.)

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