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According to Dunbar Inc., its projects with average risk have a WACC of 12%, those with below-average risk have a WACC of 10%, and those
According to Dunbar Inc., its projects with average risk have a WACC of 12%, those with below-average risk have a WACC of 10%, and those with above-average risk have a WACC of 14%. Which of the following projects should Dunbar invest in?
Average risk project with an expected 13% return | ||
Above-average risk project with an expected 12% return | ||
Above-average risk project with an expected 12% return | ||
Below-average risk project with an expected 9% return | ||
Average risk project with an expected 10% return |
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