Question
Suppose Tapley Inc. uses a WACC of 8% for below average risk projects , 10% for average risk projects, and 12% for above average risk
Suppose Tapley Inc. uses a WACC of 8% for below average risk projects , 10% for average risk projects, and 12% for above average risk projects Which of the following independent projects should tapley accept assuming that the company uses the NPV method wen choosing a project.
A. Project A, which has average risk and an IRR = 9%
B Project B which below average risk and an IRR -8.5%
C Project C which has above average risk and and IRR - 11%
D Without information about the projects NPV we cannot determine which one or ones should be accepted
E. Allof these projects should be accepted as they will produce a positive NPV
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