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Lapango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk
Lapango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk project: have a WACC of 12%. Which of the following project(s) should the company accept with the features of each project being described as follows? (Hint: No calculation is needed) A) Accept Project a, if Project a is of average risk and has a return of 11%. B) Accept Project b, if Project b is of below-average risk and has a return of 7.5%. O C) Accept Project c, if Project of c is above-average risk and has a return of 11.5%. D) ALL of Projects a, b, and c stated above should be accepted. OE) NONE of Projects a, b, and c stated above should be accepted. Mansi Inc. is considering a project that has the attached cash flows. What is its regular payback? Year 0 2 Cash flows -$500 $150 $200 3 $600 A) 3.00 years B) 2.03 years C) 2.25 years D) 2.75 years E) 2.50 years
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