Question
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?
A)An average risk project with an IRR of 10%
B)Low risk project with an IRR of 7%
C)High risk project with an IRR of 13%
D)High risk project with IRR of 11%
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
