Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment in millions) Rate of Return Risk-adjusted WACC Excess Return Ranking Available Capital Ranking A $200 16.0% B 500 14.0 200 12.5 D 300 11.5 E 350 10.7 F 200 10.0 G 400 5.0 . Except for projects B and C are mutually exclusive, all the other projects are independent. Projects A, D, and F are high-risk projects; projects B and C are average-risk projects; while projects E and G are low-risk projects. . The company estimates that its WACC is 8%. 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 $900. Select one: a. A, D, E X b. A, B, C c. A, C, D d. C, E, F e. A, B Which of the following statements is INCORRECT? Select one: a. One of the disadvantages of choosing between mutually exclusive projects on the basis of discounted payback method is that you might choose the project with the faster payback period but with lower total return. b. The IRR method is appealing to some managers because it produces a rate of return upon which to base decisions rather than a dollar amount like the NPV method. c. When choosing between mutually exclusive projects, managers should accept all projects with IRRs greater than the weighted average cost of capital. d. When choosing between mutually exclusive projects, managers should accept the project with the highest positive NPV. X e. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method