Whipple Industries Inc ? the Firm's Marginal Cost of Capital Schedule Is as Optimal

Whipple Industries Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: $\begin{array}{lll}& \text { Required } & \text { Expected Rate } \\\text { Project } & \text { Investment } & \text { of Retum }\\\text { A } & \$ 2 \text { million } & 20.0 \% \\\mathrm{~B} & \$ 3 \text { million } & 15.0 \% \\\mathrm{C} & \$ 1 \text { million } & 13.5 \% \\\mathrm{D} & \$ 4 \text { million } & 13.0 \% \\\mathrm{E} & \$ 1 \text { million } & 12.5 \% \\\mathrm{~F} & \$ 3 \text { million } & 12.0 \% \\\mathrm{G} & \$ 5 \text { million } & 11.5 \%\end{array}$ ? The firm's marginal cost of capital schedule is as follows: $\begin{array}{ll}\text { Amount of }\\\text { Funds Raised } & \text { Cost } \\\$ 0-\$ 6 \text { million } & 12.0 \% \\\$ 6 \text { million - } \$ 12 \text { million } & 12.5 \% \\\$ 12 \text { million }-\$ 18 \text { million } & 13.5 \% \\\text { Over } \$ 18 \text { million } & 15.0 \%\end{array}$ ?
Determine Whipple's optimal capital budget (in dollars) for the coming year.

A) $11 million
B) $10 million
C) $5 million
D) $14 million