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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Required Risk- Project investment adjusted (in millions) WACC $200

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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Required Risk- Project investment adjusted (in millions) WACC $200 H. NPV (in Profitability millions) Index Ranking Available Capital Ranking $50 B 70 H. 45 150 L. 40 D 30 A. 30 E 120 H 20 F 100 A 15 G 50 L. 10 H 22 5 Except for projects G and Hare 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 $400. Select one: a. A, B, D, G, H b. B, C, D, E, H c. A,B,C O d. B.C.D.F O e. A, B, D, FH

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