Benchmark Project B 3.4 years 2.5 years Based on the IRR method, which of the projects will the company accept? Project A Payback Discounted Payback 2.7 years NPV -$2.5 IRR 5.6% MIRR 5.4% 3.5 years Project C 4.5 years 4.8 years $0.5 8.1% 7.9% $5.8 11.296 7.7% Projects A, B, and C are mutually exclusive. All projects have the same degree of risk The company estimates that its WACC = 796 Select one: 03 A, B, C b. B, C c. A Od AB e. B Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment in millions) Rate of Return Risk-adjusted WACC Excess Return Ranking Available Capital Ranking A $200 16.0% B B 500 13.5 400 12.5 D D 1000 11.5 E 800 10.7 F F 200 10.0 G 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: a. A C G O b. AE OCBCF O d. 8. E O e A, B, C