The managers of JJs Enterprises are trying to determine the companys optimal capital budgetfor the upcoming year. JJs is considering the following projects: The company estimates that itsWACC is 11 percent. All projects are independent. The company adjusts for risk by adding 2percentage points to the WACC for high-risk projects and subtracting 2 percentage points fromthe WACC for low-risk projects. Which of the projects will the company accept?

Project Size Rate of Return Risk

A $200,000 16% High

B $500,000 14% Average

C $400,000 12% Low

D $300,000 11% High

E $100,000 10% Average

F $200,000 10% Low

G $400,000 7% Low

Please include work and formulas because I do not know how to arrive at the answers.