A company provides you with the following estimates:

Below-Average Risk project'sWACC = 8%

Average-Risk project'sWACC = 10%

Above-average risk project'sWACC = 12%

Which of the following independent projects should the company accept?

A. Project A has below-average risk and an IRR=7.75%.

B. Project B has average risk and an IRR=10.75%.

C. Project C has above-average risk and an IRR=11.75%.

D. Both Project B and Project C should be accepted.