17. Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12%. Which of the following statements is CORRECT? a. Project D is probably larger in scale than Project C. b. Project C probably has a faster payback. c. Project probably has a higher IRR. d. The crossover rate between the two projects is below 12%. e. Project D probably has a higher IRR. SI IRR. 18. Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (co AC IS 10%, which reflects the cost of capital for its average asset. Its assets vary widely in tis and Laramie evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high- risk projects at 12%. The company is considering the following projects: Project Risk Expected Return High 15% Average 12% High 11% Low 9% Low 6% Which set of projects would maximize shareholder wealth? a. A and B. b. A, B, and C. c. A, B, and D. d. A, B, C, and D. e. A, B, C, D, and E. 19. The firm's target ca Sem's target capital structure should be consistent with which of the following statements? a. Minimize the cost of debt (rd). b. Obtain the highest possible bond rating. c. Minimize the cost of equity (rs). d. Minimize the weighted average cost of capital (WACC). e. Maximize the earnings per share (EPS)