Weghorst Co. is financed exclusively using equity funding and has a cost of equity of 10.65%. It is considering the following projects for investment next year:

Project	Required Investment	Expected Rate of Return
W	$23,575	9.65%
X	$13,250	14.60%
Y	$10,975	14.10%
Z	$32,675	9.70%

Each project has average risk, and Weghorst Co. accepts any project whose expected rate of return exceeds its cost of capital. How large should next years capital budget be?

$45,925

$24,225

$36,825

$34,550