Question $23$

$4$ pts

A firm currently estimates that its average$-$risk projects have a WACC of $10\%,$ its belowaverage risk projects have a WACC of $8\%,$ and its above$-$average risk projects have a WACC of $12\%.$ Which of the following projects $($A$,$ B$,$ and C$)$ should the company accept?

Project C$,$ which is of above$-$average risk and has a return of $11\%.$

Project A$,$ which is of average risk and has a return of $9\%.$

None of the projects should be accepted.

Project $B,$ which is of below$-$average risk and has a return of $8\mathrm{.}5\%.$

All of the projects should be accepted.