Question: 1. Hondo Corp. is evaluating the following five projects. The firm's WACC is 8.25% and units are $ min. CFS 3.15 2.95 Project Alpha Beta

1. Hondo Corp. is evaluating the following five projects. The firm's WACC is 8.25% and units are $ min. CFS 3.15 2.95 Project Alpha Beta Delta Gamma Epsilon CF. -10.25 -6.75 -12.95 -2.85 -9.85 CF1 3.15 2.15 5.15 0.00 0.00 CF2 3.15 2.35 4.85 0.00 0.00 CF3 3.15 2.55 4.45 0.00 0.00 CF 3.15 2.75 4.25 0.00 0.00 6.75 11.45 a. Which of Projects Alpha and Beta should the firm undertake? [4 points] b. If Projects Alpha and Delta are mutually exclusive, which should Hondo Corp. choose? [4 points] c. Determine the IRR of Projects Gamma and Epsilon. Using the IRR as a decision criterion, which of Gamma and Epsilon should the firm undertake? [3 points]

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