XYZ Corporation has a target capital structure of 60 percent equity and 40 percent debt. The firm can raise an unlimited amount of debt at a before-tax cost of 9 percent. The company expects to retain earnings of $300,000 in the coming year and to face a tax rate of 35 percent. The last dividend was $2 per share and the growth rate of the company is constant at 6 percent. If the company needs to issue new equity, then the flotation cost will be $5 per share. The current stock price is $30. XYZ has the following investment opportunities:

YEAR	Project Cost	IRR
1	$100,000	0.11
2	$200,000	0.13
3	$100,000	0.12
4	$150,000	0.14
5	$75,000	0.09

What is the company's optimal capital budget?