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	$300	16.0%
B	200	15.5
C	400	12.0
D	100	11.7
E	200	10.0
F	200	9.0
G	350	8.5

Except for projects A and B are mutually exclusive, all the other projects are independent. Project A and D are high-risk project; project B and E are average-risk projects; while project C, F, and G are low-risk project. The company estimates that its WACC is 9%. The company adjusts for risk by adding 3 percentage points to the WACC for high-risk projects, and subtracting 3 percentage points from the WACC for low-risk projects. The company has a limited capital budget at $1100.

Select one:

a. B, C, F, G

b. A, B, C, D

c. A, B, E, G

d. A, C, D, E

e. B, C, E, F