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Leishman Inc. has a different WACC for each of three types of projects. Low-risk projects have a WACC of 8.00%, average-risk projects a WACC of

Leishman Inc. has a different WACC for each of three types of projects. Low-risk projects have a WACC of 8.00%, average-risk projects a WACC of 10.00%, and high-risk projects a WACC of 12%. Which of the following projects do you recommend the firm accept?

Project

Level of Risk

IRR

A

Low

9.50%

B

Average

8.50%

C

Average

7.50%

D

Low

9.50%

E

High

14.50%

F

High

17.50%

G

Average

11.50%

Select one:

a.

A, D, E, F, G,

b.

Not enough information

c.

B, C, E, F, G

d.

A, B, C, D, G

e.

A, B, C, D, E, F, G

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