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Company ABC estimates its weighted average cost of capital (WACC) is 10.5%; it has the following list of capital budgeting projects (and their associated rates
Company ABC estimates its weighted average cost of capital (WACC) is 10.5%; it has the following list of capital budgeting projects (and their associated rates of return); each project's projected cost is $1 million. Which projects should it undertake?
Project | Rate of Return |
A | 12.0% |
B | 11.5% |
C | 10.5% |
D | 10.2% |
E | 10.7% |
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