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Please show work on how to solve. Thank you. Which of the projects will the company accept? (a) No budget limitation (b) subject to budget
Please show work on how to solve. Thank you.
Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment (in millions) Risk- adjusted WACC NPV (in Profitability millions) Index Ranking Available Capital Ranking . $200 H $50 . 70 H 45 c. 150 L 40 D 30 A 30 E 120 H 20 F 100 A 15 G 50 L 10 H 22 L 5 Except for projects G and Hare mutually exclusive, all the other projects are independent The company estimates that its WACC is 10.5%. The company adjusts for risk by adding 2 percentage points to the WACC for high-risk projects and subtracting 2 percentage points from the WACC for low-risk projects. The company has a limited capital budget of $400. Select one: a. ABC O b. B, C, D, F O C. B, C, D, E, H O d. A, B, D, G, H O e. A, B, D, F, HStep by Step Solution
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