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The assistant manager evaluated potential investments-that is, capital budgeting projects-using the firm's average required rate of return R. He produced the following report for the

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The assistant manager evaluated potential investments-that is, capital budgeting projects-using the firm's average required rate of return R. He produced the following report for the capital budgeting manager Projet A IRR 15 NPY $1,000 SI5OD 500 5450 0 Rick High High Average Low 89 10% The capital builgeting manager usually comiders the risks associated with capital hudgeting projects before making her final decision of a project has a risk that is different from everage, she adjusts the average roquired rate of return by adding or subtracting percentage points. If the five projects listed above are independent, What is the discount rate med and which one() should the capital budgeting manager recommend be purchased after taking risk into account? Explain on your exam paper why He should accept B, and D only He should accept A, B, D and E He should accept B, and E He should accept A, and Donly He should accept A, B, and E

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