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Ziege Systems is considering the following independent projects for the coming year: Project Required Investment Rate of Return Risk A $4 million 12.25% High B

Ziege Systems is considering the following independent projects for the coming year: Project Required Investment Rate of Return Risk A $4 million 12.25% High B 5 million 14.75 High C 3 million 10.25 Low D 2 million 9.25 Average E 6 million 13.25 High F 5 million 13.25 Average G 6 million 7.25 Low H 3 million 12.25 Low

Ziege's WACC is 10.75%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects.

Which projects should Ziege accept if it faces no capital constraints?

Project A Reject Project B Accept Project C Accept Project D Reject Project E Accept Project F Accept Project G Reject Project H Accept

If Ziege can only invest a total of $13 million, which projects should it accept?

Project A Reject Project B Accept Project C Reject Project D Reject Project E Reject Project F Accept Project G Reject Project H Accept

If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million

Suppose Ziege can raise additional funds beyond the $13 million, but each new increment (or partial increment) of $5 million of new capital will cause the WACC to increase by 1%. Assuming that Ziege uses the same method of risk adjustment, which projects should it now accept?

Project A Reject Project B Accept Project C Accept Project D Reject Project E Reject Project F Accept Project G Reject Project H Accept

What would be the dollar size of its capital budget? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million

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