A company is considering 3 projects: a low risk project A , an average risk project B

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Question:

A company is considering

3

projects: a low risk project A

,

an average risk project B

,

and a high risk project C

.

The company has an average WACC of

11 %,

applies a

2 %

discount to its low risk projects, and a

2 %

premium to its high risk projects. The company should accept

None of the projects

Project B which has an expected return of

10 %

All of the projects

Project A which has an expected return of

8 %

Project C which has an expected return of

12

Posted Date: May 18, 2024 11:07 PM

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A company is considering 3 projects: a low risk project A , an average risk project B

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