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Business, 12.08.2021 05:00 maksims32592

A company estimates that an average-risk project has a wacc of 10 percent, a below-average risk roject has a cost of capital of 8 percent, and an above-average risk project has a cost of capital of 15 percent. Which of the following independent projects should the company accept? a. Project A has average risk and an IRR = 9 percent.
b. Project B has below-average risk and an IRR = 8.5 percent.
c. Project C has above-average risk and an IRR = 11 percent.
d. All of the projects above should be accepted.
e. None of the projects above should be accepted.

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