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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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