Question: ABC Inc. estimates that its average-risk projects have a cost of capital of 10%, its below-average risk projects have a cost of capital of 8%,
ABC Inc. estimates that its average-risk projects have a cost of capital of 10%, its below-average risk projects have a cost of capital of 8%, and its above-average risk projects have a cost of capital of 12%. Which of the following projects (A, B, and C) should the company accept? Project B, which is of below-average risk and has a return of 8.5%. Project C, which is of above-average risk and has a return of 11%. Project A, which is of average risk and has a return of 9%. All of the projects should be accepted. None of the projects should be accepted
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