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vivado [14]
4 years ago
10

Taylor Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and

its above-average risk projects have a WACC of 12%. Which of the following projects (A, B, and C) should the company accept?
Business
1 answer:
Liono4ka [1.6K]4 years ago
7 0

Answer:

Project B, which is of below-average risk and has a return of 8.5%.

Explanation:

E is the only one that should be accepted. A and B both have returns that are too low considering their risk and should be rejected (which means C and d is out as an answer as well.

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