Chiles Incorporated's managers are determining the company's optimal capital budget for the next year. Chiles is...

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Chiles Incorporated's managers are determining the company's optimal capital budget for the next year. Chiles is considering the following projects: Rate of Project Size Return Risk A $200,000 16% High B 500,000 14 Average C 400,000 12 Low D 300,000 11 High E 100,000 10 Average 200,000 10 Low G 400,000 7 Low Chiles estimates its WACC is 10.5% and all projects are independent. The company adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% from the WACC for low-risk projects. Which of the projects will the company accept? Chiles Incorporated's managers are determining the company's optimal capital budget for the next year. Chiles is considering the following projects: Rate of Project Size Return Risk A $200,000 16% High B 500,000 14 Average C 400,000 12 Low D 300,000 11 High E 100,000 10 Average 200,000 10 Low G 400,000 7 Low Chiles estimates its WACC is 10.5% and all projects are independent. The company adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% from the WACC for low-risk projects. Which of the projects will the company accept?