2. Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cost of capital as shown below.Table A: Alternative Projects, Required Investments, and Expected Rate of ReturnProject Investment Required in Millions of Dollars Expected Rate of Return on InvestmentA 150 12%B 300 15%C 125 10%D 75 16%E 50 20%F 500 14%G 250 18%Table B: Cost of Capital by Amount RaisedBlock of Funds(in Millions) Amount of Fundsin Block Cost of Capital for BlockFirst Block of Funds $500 10%Second Block of Funds $400 11%Third Block of Funds $300 12%Fourth Block of Funds $200 13%Fifth Block of Funds $100 14%Sixth Block of Funds $100 15%