The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 10 percent. It will invest only $79,000 this year. It has determined the IRR for each of the following projects:

Project Project size Internal Rate of Return

A $11,000 23.0%

B 31,000 19.0

C 26,000 14.0

D 11,000 10.0

E 21,000 15.0

F 21,000 18.0

G 16,000 17.0

a. Pick out the projects that the firm should accept.

b. If projects D and E are mutually exclusive, how would that affect your overall answer? That is, which projects would you accept in spending the $79,000