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 $66,400 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	11,600			22%
B		16,600			16
C		26,600			18
D		11,600			20
E		11,600			11
F		21,600			13
G		16,600			21

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

b.

If Projects A and G are mutually exclusive, which projects would you accept in spending the $66,400? (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 B
	Project E
	Project D
	Project F
	Project A
	Project G
	Project C