The Ajax Corporation has the following set of projects available to it:
Ajax can raise funds with the following marginal costs:
First $250 million 14.0%
Next 250 million 15.5
Next 100 million 16.0
Next 250 million 16.5
Next 200 million 18.0
Next 200 million 21.0
Use the marginal cost and marginal revenue concepts to derive an optimal capital budget for Ajax.