(a) No budget limitation (b) subject to budget Project Required investment Rate of (in Return millions) Risk- adjusted WACC Excess Return Ranking Available Capital Ranking A $200 16.0% B 500 13.5 400 12.5 D 1000 11.5 E 600 10.7 F 200 10.0 400 7.0 Except for projects A and B are mutually exclusive, all the other projects are independent. Projects A and C are high-risk projects; projects B and F are average-risk projects; while projects D, E, and G are low-risk projects. The company estimates that its WACC is 11%. The company adjusts for risk by adding 2 percentage points to the WACC for high-risk projects and subtracting 2 percentage points from the WACC for low-risk projects. The company has a limited capital budget of $1100. Select one: O a. B, C, F O b.BE O c. A, B, C O d. A, E O e. A, D, E