Managers from different departments in Zenith Trading, a large multinational corporation, have

offered six projects for consideration by the corporate office. A staff member for the chief

financial officer used key words to identify the projects and then listed them in order of projected

rate of return as shown below. Assume the company wants to grow rapidly through high leverage

and uses only $30\%$ equity financing that has a cost of equity capital of $6\%$ and rest debt financing

with a cost of debt capital of $16\%.$

$($a$)$ Using the WACC, which of the below projects should the company undertake?

$($b$)$ Assume that the company used the WACC as a starting point and established its MARR by

adding $4\%$ risk margin because of the risky cash flows. Based on the company's MARR,

which of the below projects should the company undertake?