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Required Investment Rate of Return Project Risk A $4 million 13.00% High 5 million 10.50 High 3 million 8.50 Low 8.00 Average 2 million 6

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Required Investment Rate of Return Project Risk A $4 million 13.00% High 5 million 10.50 High 3 million 8.50 Low 8.00 Average 2 million 6 million 11.50 High 5 million 11.50 Average 6 million 6.00 Low 3 million 11.00 LOW Ziege's WACC is 9.00%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects. a. Which projects should Ziege accept if it faces no capital constraints? Project A Reject Project B Accept Reject 9 Project C Project D Project E Accept Reject . Drniert F Ziege's WACC is 9.00%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects. a. Which projects should Ziege accept if it faces no capital constraints? Project A Reject ! Project B Accept Project C Reject Project D Project E Reject Project F Project G Accept Project H Reject b. If Ziege can only invest a total of $13 million, which projects should it accept? Project A Reject Project B Accept Project C Reject Project D Accept Project E Reject Project F Reject Project G Accept Project H Relect If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places million C. Suppose Ziege can raise additional funds beyond the $13 million, but each new increment (or partial increment) of $5 million of new capital will cause the WACC to increase by 1%. Assuming that Ziege uses the same method of risk adjustment, which projects should it now accept? Project A Select Project B -Select- Project Select Project D Project E -Select Project F -Select Project G -Select- Project H Select- What would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. million

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