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Ziege Systems is considering the following independent projects for the coming year: Ziege's WACC is 9 . 0 0 % , but it adjusts for
Ziege Systems is considering the following independent projects for the coming year:
Ziege's WACC is but it adjusts for risk by adding to the WACC for highrisk projects and subtracting for lowrisk projects.
B If Ziege can only invest a total of $ million, which projects should it accept?
C If Ziege can only invest a total of $ million, what would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $ should be entered as Round your answer to two decimal places.
$ million
D Suppose Ziege can raise additional funds beyond the $ million, but each new increment or partial increment of $ million of new capital will cause the WACC to increase by Assuming that Ziege uses the same method of risk adjustment, which projects should it now accept?
E What would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $ should be entered as Round your answer to two decimal places.
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