General Motor has a WACC 9.8%. Which one of the following projects would the firm accept if the decision is based on internal rate of return (IRR) and profitability index (Pl) information as given below? Project A with PI 98% Project B with IRR 10% Project C with IRR 9% Project D with PI 10% Question 5 (3 points) Which one of the following methods of raising capital is associated with tax benefit (reduce tax burden) to the form? Issuing new corporate bonds. Keeping more retained earnings in the firm. Issuing new preferred stocks. Issuing new common stocks 30 ES * 98 5 & 7 3 4 6 00 g E R T YU P F G H J K L