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

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Which of the projects will the company accept? (a) No budget limitation (b) subject to budget Project Required investment (in millions) Risk- adjusted WACC NPV (in Profitability millions) Index Ranking Available Capital Ranking A $200 H. $50 B 70 H 45 150 L. 40 D 30 A 30 E 120 H 20 F A 5 100 50 G L -1 H 10 L. -5 Except for projects C and D 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 limited capital budget of $230. Select one: O a B, D, E O b. A, D O CBD. G O d. B, C O e. B, D, F, H

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