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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment (in millions) Risk- adjusted WACC NPV
Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment (in millions) Risk- adjusted WACC NPV in Profitability millions) Index Ranking Available Capital Ranking $200 H, $50 B 70 H, 45 C 150 L, 40 D 30 A, 30 120 H, 20 100 A, 15 WLI 50 L, 10 22 L, -5 Except for projects B and C are mutually exclusive, all the other projects are independent. The company estimates that its WACC is 10.5%. The company adjusts for risk by adding 2 percentage points to the WACC for high-risk projects, and subtracting 2 percentage points from the WACC for low-risk projects. The company has a limited capital budget at $450. Select one: O a. A, B, D, F O b. A, B, D, F, G O c. B, C, D, E, H O d. B, C, D, G O e. A, B, D, G
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