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 $89,800 this year. It has determined the internal rate of return for each of the following projects.

Project	Project Size			Internal Rate of Return
A	$	11,200			21	%
B		31,200			19
C		26,200			17
D		11,200			13
E		31,200			15
F		21,200			16
G		16,200			14

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

b. If Projects A and B are mutually exclusive, which projects would you accept in spending the $89,800? (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 A
• Project B
• Project C
• Project D
• Project F
• Project G
• Project E