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 $78,200 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	10,800			19	%
B		30,800			16
C		25,800			17
D		10,800			18
E		10,800			13
F		20,800			12
G		15,800			15

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 Gunanswered
• Project Eunanswered
• Project Cunanswered
• Project Dunanswered
• Project Aunanswered
• Project Funanswered
• Project Bunanswered

b. If Projects A and D are mutually exclusive, which projects would you accept in spending the $78,200? (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 Aunanswered
• Project Dunanswered
• Project Cunanswered
• Project Funanswered
• Project Bunanswered
• Project Gunanswered
• Project E