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Kent Incorporated's managers are determining the company's optimal capital budget for the next year. Kent is considering the following projects: table [ [ Project
Kent Incorporated's managers are determining the company's optimal capital budget for the next year.
Kent is considering the following projects:
tableProjectSize,Rate ofA$HighBAverageCLowDHighEAverageFLowGLow
Kent estimates its WACC is and all projects are independent. The company adjusts for risk by adding to the WACC for highrisk projects and subtracting from the WACC for lowrisk projects. Which of the projects will the company accept?
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