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Here are the quesitons: 9b. Based on your MCC/IOS graph, which projects should the company accept? Explain why. 9c. What is the WACC that
Here are the quesitons:
"9b. Based on your MCC/IOS graph, which projects should the company accept? Explain why.
9c. What is the WACC that should be used to optimize the firms capital budgeting decisions? Explain why.
10. Should the corporate cost of capital as developed above be used by both divisions and for all projects within each division? If not, what type of adjustments should be made?"
Include your MCC/IOS Graph here. Percent % Capital Budget 16.000 15.500 15.000 14.500 14.000 13.500 13.000 12.500 12.000 11.500 11.000 10.500 10.000 IRR=15.4% IRRs 13.5% IRR=12.9% WACC-12.322 WACC 1 1.962 WACC =11.1 IRR=11.2% 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 -WACCIRR Dollar Value in Millions 9b. Based on your MCC/IOS graph, which projects should the company accept? Explain why. 9c. What is the WACC that should be used to optimize the firm's capital budgeting decisions? Explain why. 10. Should the corporate cost of capital as developed above be used by both divisions and for all projects within each division? If not, what type of adjustments should be madeStep by Step Solution
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