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Midwest Water Works estimates that its WACC is 10.46%. The company is considering the following capital budgeting projects. Assume that each of these projects is

Midwest Water Works estimates that its WACC is 10.46%. The company is considering the following capital budgeting projects.

Assume that each of these projects is just as risky as the firm's existing assets and that the firm may accept all the projects or only some of them. Which set of projects should be accepted?

Project Size Rate of Return
A $1 million 12.0% -Select-Accept Don't accept
B 2 million 11.5 -Select-Accept Don't accept
C 2 million 11.2 -Select-Accept Don't accept
D 2 million 11.0 -Select-Accept Don't accept
E 1 million 10.7 -Select-Accept Don't accept
F 1 million 10.3 -Select-Accept Don't accept
G 1 million 10.2 -Select-Accept Don't accept

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