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Ziege Systems is considering the following independent projects for the coming year: Project Required Investment Rate of Return Risk A A $4 million 13,25% High

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Ziege Systems is considering the following independent projects for the coming year: Project Required Investment Rate of Return Risk A A $4 million 13,25% High B 5 million 10.75 High 3 million 8.75 LOW D 2 million 8.75 Average E 6 million 11.75 High F 5 million 11.75 Average F G G 6 million 6.75 Low H 3 million 11.25 Low Ziege's WACC IS 9.25%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for low-risk projects. a. Which projects should Ziege accept if it faces no capital constraints? Project A -Select- Project B -Select- Project C -Select- Project D -Select- Project E -Select- Project F -Select- -Select- Project G Project H -Select- b. 11 Zlege can only Invest a total of $13 million, which projects should it accept? Project A -Select- Project B -Select- Project C -Select Project D -Select- Project -Select Project -Select ! Project G -Select-t Project H -Select- If Ziege can only invest a total of $13 million, what would be the dollar size of its capital budget? Enter your answer in milions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million c. Suppose Ziege can raise additional funds beyond the $13 million, but each new increment for partiat 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 Project B Select ! Project Select Select ! Project D -Select- Project -Select- Project -Select- Project G -Select- Project -Select 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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