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2. Taylor Inc. estimates that its average-risk projects have a WACC of 10%, its belowaverage risk projects have a WACC of 8%, and its above-average

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2. Taylor Inc. estimates that its average-risk projects have a WACC of 10%, its belowaverage risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%. Which of the following projects (A, B, and C) should the company accept? Explain why? a. Project A, which is of average risk and has a return of 9%. b. Project B, which is of below-average risk and has a return of 8.5%. c. Project C, which is of above-average risk and has a return of 11%

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