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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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