Question
A company estimates that an average-risk project has a WACC of 10 percent, a below-average-risk project has a WACC of 8 percent, and an above-average-risk
A company estimates that an average-risk project has a WACC of 10 percent, a below-average-risk project has a WACC of 8 percent, and an above-average-risk project has a WACC of 12 percent. Which of the following independent projects should the company accept?
Question 5 options:
| Project A has average risk and an IRR = 9 percent. | |
| Project B has below-average risk and an IRR = 8.5 percent. | |
| Project C has above-average risk and an IRR = 11 percent. | |
| All of the projects above should be accepted. | |
| None of the projects above should be accepted. |
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Ethics In Finance
Authors: John R. Boatright
3rd Edition
1118615824, 978-1118615829
