Adjusting for Risk: Docs R Us has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR by 3% for low risk projects, leaving the IRR the same for moderate risk projects, and lowering the calculated IRR by 2% for high risk projects.

Project Cost NVP Risk IRR Risk Level ADJ IRR

A $21,000 -$2,000 10% Low

B $17,000 $4,000 14% Low

C $15,000 $2,000 12% High

D $14,000 $4,000 15% Average

E $4,000 $1,000 11% High

Without capital rationing, and given their cost of capital of 12%, and ignoring risk, based on IRR which projects should Meds R Us accept? Why