Question: BA Corp. is considering the following four projects. Note that the projects are not mutually exclusive and that BA Corp's WACC is 9.25% while its
BA Corp. is considering the following four projects. Note that the projects are not mutually exclusive and that BA Corp's WACC is 9.25% while its average tax rate is 25%, Project A: Requires an initial investment of $8.25 min and has an NPV of $12.5 min Project B: Requires an initial investment of $6.75 min and has an NPV of $8.65 mln Project C. Requires an initial investment of $7.15 min and has an NPV of $8.25 min Project D: Requires an initial investment of $7.70 min and has an NPV of $12.70 min Management has established a capital budget of $15 min for the year. How should management rank the four projects
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