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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
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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