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 $77,400 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	10,600			16	%
B		30,600			21
C		25,600			19
D		10,600			20
E		10,600			17
F		20,600			13
G		15,600			12

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

b. If Projects B and D are mutually exclusive, which projects would you accept in spending the $77,400? (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 A
	Project D
	Project C
	Project G
	Project B
	Project F
	Project E