The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm’s 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.

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.

Project B

Project E

Project D

Project F

Project A

Project G

Project C