Question
A firm is deciding what projects it should consider investing it. Its WACC is 10%. When it considers projects, it reduces the WACC by 2%
A firm is deciding what projects it should consider investing it. Its WACC is 10%. When it considers projects, it reduces the WACC by 2% for low risk projects, and increases the WACC by 2% for high risk projects. Average risk projects face the WACC as presented.
Which of the following projects are eligible for further consideration?
| Project | Rate of Return | Risk |
| A | 9% | low |
| B | 8% | high |
| C | 12% | average |
| D | 9% | high |
| E | 7.50% | low |
| F | 10% | average |
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Mein Ultimativer Weihnachts Planer
Authors: Zizo Nimane
1st Edition
B0CM2J8GTG
