Which of the projects will the company accept? The managers of Kenforest Grocers are trying to determine the company's optimal capital budget for the upcoming year. Kenforest is considering the following projects: (a) No budget limitation (b) subject to budget Required investment Project Rate of Return Risk- adjusted WACC Excess Return Ranking Available Capital Ranking (in millions) A $200 16.0% B 500 13.5 400 12.5 D 1000 11.5 E 600 10.7 F 200 10.0 G 400 9.5 Scenario 1: Which of the projects will the company accept? Except for projects A and B are mutually exclusive, all the other projects are independent. Project A and C are high-risk project; project B and F are average-risk projects, while project D, E and G are low-risk project. The company estimates that its WACC is 11%. 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 at $1600. Select one: a. A, C, E, F O b.A,B, E c. B, C F d. A, D, G e. A D