Question
Version D15. Which of the projects will the company accept?FIN 350, 21F(a) No budget limitation(6) subject to budgetProjectRequired investment (in millions)$200100150Risk-adjustedWACCH. 175H, 17CL R5NPV (in
Version D15. Which of the projects will the company accept?FIN 350, 21F(a) No budget limitation(6) subject to budgetProjectRequired investment (in millions)$200100150Risk-adjustedWACCH. 175H, 17CL R5NPV (in millions)ProfirabilityIndexRankingAvailableCapitalRanking5504540130E125A, lo.SH. 1.53020F100G50H120A, 10.S15L, 8510L. 8.5-5 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 of $600A) B, D, F, GB) A, B, D, FC) A, B, D, F, GD) A, C, D. FE) B, C, D, E,
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