Taylor Inc. estimates that its average-risk projects have a WACC of 10%, its below-average 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? Explain why.

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

b.Project B, which is of below-average risk and has a return of 8.5%.

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