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A firm's current investment opportunity schedule and the weighted marginal cost of capital schedule are shown below:

Investment Opportunity IRR Initial Investment

A 15% $200,000

B 12 300,000

C 19 100,000

D 10 400,000

E 16 300,000

Weighted Marginal Cost of Capital
Range of total new financing WMCC

$0-$250,000 7.5%

$251,000- 500,000 8.9

500,001- 1,000,000 10.0

1,000,001- 1,500,000 12.0

The investment opportunities which should be selected are:

A. B, C, D and E

B. A, B, C and D

C. A, B, D and E

D. A, B, C and E

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