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OPTIMAL CAPITAL BUDGETMarble Construction estimates that its WACC is 10% if equitycomes from retained earnings. However, if the company issues newstock to raise new equity, it estimates that its WACC will rise to10.8%. The company believes that it will exhaust its retainedearnings at $2,500,000 of capital due to the number of highlyprofitable projects available to the firm and its limited earnings.The company is considering the following seven investmentprojects:ProjectSizeIRRA$650,00014.0%B1,050,00013.5C1,000,00011.2D1,200,00011.0E500,00010.7F650,00010.3G700,00010.2Assume that each of these projects is independent and that eachis just as risky as the firm's existing assets. Which set ofprojects should be accepted?Project A-Select-AcceptDon't acceptItem 1Project B-Select-AcceptDon't acceptItem 2Project C-Select-AcceptDon't acceptItem 3Project D-Select-AcceptDon't acceptItem 4Project E-Select-AcceptDon't acceptItem 5Project F-Select-AcceptDon't acceptItem 6Project G-Select-AcceptDon't acceptItem 7What is the firm's optimal capital budget? Write out your answercompletely. For example, 13 million should be entered as13,000,000.$