Question: 12. The DRI Corp. evaluates all new independent projects using the IRR. The company's WACC equals 10%. Two independent projects X and Y are being

12. The DRI Corp. evaluates all new independent projects using the IRR. The company's WACC equals 10%. Two independent projects X and Y are being considered. The riskiness of the two projects implies that they should both be evaluated using the WACC. The IRR's for the projects are 12% (for Project X) and 8% (for Project Y). What should the company's decisions be about these projects?

a.

Accept both projects

b.

Reject both projects

c.

None of the above

d.

Accept Y but reject X

e.

Accept X but reject Y

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