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what is A,b, and c ? Hampton Manufacturing estimates that its WACC is 12.3%. The company is considering the following seven investment projects: Project Size

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Hampton Manufacturing estimates that its WACC is 12.3%. The company is considering the following seven investment projects: Project Size IRR of A $ 650,000 13.7% B 1,300,000 13.2 1,300,000 12.9 D 1,250,000 12.7 E 700,000 12.6 F 700,000 12.0 850,000 11.7 a. Assume that each of these projects is independent and that each is just as risky as the firm's existing assets. Which set of projects should be accepted? Project A Select Project B Select Project Select Project D Select Project E -Select Project F -Select Project G -Select V v What is the firm's optimal capital budget? Write out your answer completely. For example, 13 milion should be entered as 13,000,000. Round your answer to the nearest dollar $ b. Now, assume that Projects C and D are mutually exclusive. Project D has an NPV of $350,000, whereas Project C has an NPV of $400,000. Which set of projects should be accepted? Project A Select b. Now, assume that Projects C and D are mutually exclusive Project D has an NPV of $350,000, whereas Project Chas an NPV of $400,000. Which set of projects should be accepted? Project A -Select- Project B 1-Select- Project -Select- Project D -Select- Project E -Select- Project F -Select Project G -Select- O * What is the firm's optimal capital budget in this case? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar. $ C. Ignore previous part, and now assume that each of the projects is independent but that management decides to incorporate project risk differentials. Management judges Projects B, C, D, and to have average risk, Project A to have high risk, and Projects F and to have low risk. The company adds 2% to the WACC of those projects that are significantly more risky than average, and it subtracts 2% from the WACC for those that are substantially less risky than average. Which set of projects should be accepted? Project A Project B -Select- Project -Select Project -Select Project E -Select Project F -Select- Project G -Select- What is the firm's optimal capital budget in this case? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar. $

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