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	$350	16.0%
B	400	13.8
C	500	13.0
D	300	11.5
E	100	10.7
F	200	10.0
G	400	7.0

Except for projects C and D are mutually exclusive, all the other projects are independent. Projects A and C are high-risk projects; projects B and F are average-risk projects; while projects D, E, and G are low-risk projects. 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 $1100.

Select one:

a. A, C, E

b. A, B, E

c. B, D, E, F

d. A, D, E, F

e. A, B, D