Whipple Industries Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration:

	Required	Expected Rate
Project	Investment	of Return
A	$2 million	20.0%
B	$3 million	15.0%
C	$1 million	13.5%
D	$4 million	13.0%
E	$1 million	12.5%
F	$3 million	12.0%
G	$5 million	11.5%

The firm's marginal cost of capital schedule is as follows:

Amount of
Funds Raised	Cost
$0 - $6 million	12.0%
$6 million - $12 million	12.5%
$12 million - $18 million	13.5%
Over $18 million	15.0%

Determine Whipple's optimal capital budget (in dollars) for the coming year.

	a.	$5 million
	b.	$10 million
	c.	$14 million
	d.	$11 million

Choose the correct one