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Vang Enterprises, which is debt-free and finances only with equity from retained earnings, is considering 7 equal-sized capital bud geting projects. Its CFO hired you

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Vang Enterprises, which is debt-free and finances only with equity from retained earnings, is considering 7 equal-sized capital bud geting projects. Its CFO hired you to assist in deciding whether none; some, or all of the projects should be accepted. You have the following information: t PFF = 4.50% : RP M =5.50%; and b=0.86. The company adds or subtracts a specified percentage to the corporate WACC when it evaluates projects that have above- or below-average risk. Data on the 7 projects are shown below, If these are the only projects under consideration, how large should the capital budget be? a. $75 million b. $175 million c. $100 million d. $125 million e. $150 million

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