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 $81,200 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	10,300			15	%
B		30,300			21
C		25,300			12
D		10,300			22
E		30,300			20
F		20,300			11
G		30,300			14

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.)

check all that apply 1

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

b. If Projects B and D are mutually exclusive, which projects would you accept in spending the $81,200? (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.)

check all that apply 2

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