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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 $99,400 this year. It has determined the internal rate of return for each of the following projects.

Project Project Size Internal Rate of Return
A $ 11,100 22 %
B 31,100 21
C 26,100 19
D 31,100 17
E 11,100 13
F 21,100 14
G 31,100 16

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

b. If Projects A and B are mutually exclusive, which projects would you accept in spending the $99,400? (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 G
Project B
Project C
Project E
Project A
Project F
Project D

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