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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget NPV (in Profitability millions) Index Ranking Available Capital Ranking

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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget NPV (in Profitability millions) Index Ranking Available Capital Ranking Required Risk- Project investment adjusted (in millions) WACC A $200 H B 70 H 150 L $50 45 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 H 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 $400. Select one: a. A.B, D.GH .b. B, C, D, E,H O c. A,B,C O d. B,C,D,F e. A, B, D, F, H

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