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 $74,000 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	11,000			23	%
B		31,000			19
C		26,000			13
D		11,000			16
E		11,000			20
F		21,000			18
G		16,000			11

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

b. If Projects A and E are mutually exclusive, which projects would you accept in spending the $74,000? (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.)

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