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need help Which of the projects will the company accept? (a) No budget limitation b) subject to budge Project Rate of Return Risk-adjusted WACC Excess
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Which of the projects will the company accept? (a) No budget limitation b) subject to budge Project Rate of Return Risk-adjusted WACC Excess Return Ranking Required investment in millions) 3200 Available Capital Ranking A 100% B 500 13.5 400 125 D 1000 115 E 600 10.7 F 200 10.0 400 70 Except for projects A and B are mutually exclusive, all the other projects are independent Projects A and Care high-risk projects projects and are average-risk projects while projects D, E, and are lowisk proces The company states that its WACC is 11%. The company adjusts for it by adding 2 percentage points to the WACC for high risk projects and subtracting 2 percentage points from the WACC for low-risk project The company has a limited capital budget of $1100 E 300 10.7 F 200 10.0 G 400 70 . Except for projects A and B are mutually exclusive, all the other projects are independent Projects A and Care high-risk projects, projects Band F are average-risk projects while projects D, E, and are lowcitak projects The company estimates that is WACC is 11%. The company adjusts for risk by adding 2 percentage points to the WACC for high projects and subtracting 2 percentage points from the WACC for low-risk projects The company has a mited capital budget of 51100 Select one . Ob AB, , Od BE OB.CF Step by Step Solution
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