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A company with an average WACC of 10% adjusts for risk by adding 2% for high risk projects and subjecting 2% for low risk projects.

A company with an average WACC of 10% adjusts for risk by adding 2% for high risk projects and subjecting 2% for low risk projects. Which of the following projects should the company accept?

An average risk project with an IRR of 10%

Low risk project with an IRR of 7%

High risk project with an IRR of 13%

High risk project with IRR of 11%

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