Need help with this question ASAP. I am totally stumped on how to do
this.  Must have completed by 6 p.m. Oct 13th or no need to respond. 
THANKS!

3. A company has identified the following candidates for capital
acquisition funding:

Item	MIRR	Cost (000)
A	13.2%	$ 2,300
B	8.0 	3,970
C	9.6 	5,800
D	9.4 	1,550
E	7.8 	620
F	8.3 	9,430

In regards to capital funds, the company expects to have $12 million
in retained earnings available next year to fund its capital budget.
It has estimated the cost of these funds at 15%. The company can
borrow up to $5 million at a cost (net of flotations costs) of 7½%. It
can place an additional $7.5 million for 9%. Beyond that, the cost of
borrowing is estimated to be 10.5%. Should the company issue new
shares, it has been estimated that the net cost of those funds would
come to 18%. The company?s marginal tax rate is 40%. The company?s
capital structure is thought to be more or less optimal, with debt
representing 55% of the total market capitalization of the company.
(In your calculations, you should carry three or four decimal places
of precision, but report your answers to the nearest tenth of a
percent or, for dollar numbers, to the nearest $100,000.)

A. What is the cost, net of tax, of the first $5 million of new debt funds?

B. Calculate to the nearest one-tenth of one percent the blended cost
of capital for the first dollar of capital funds raised, assuming the
company raises the funds so as to maintain its present capital
structure.

C. Calculate the first break point, that is, the lowest level of total
capital raised at which the Marginal Cost of Capital schedule steps
up.

D. To the nearest one-tenth of one percent, what is the blended cost
of capital just beyond the first break point in the MCC?

E. Calculate the second break point.

F. To the nearest one-tenth of one percent, what is the blended cost
of capital just beyond the second break point in the MCC?

G. Which projects should be included in the optimal capital budget of this company?

H. To the nearest $1,000, what is the total amount of the optimal
capital budget for this company?
I. If the optimal budget is adopted, what then will be the MCC of this
company, to the nearest one-tenth of one percent?