The capital budgeting manager of Conscientious Construction Company (CCC) submitted the following report to the CFO:

CCC generally takes risk into consideration by adjusting its average required rate of return (r), which equals 8 percent, when evaluating projects with risks that are either lower or higher than average. A 5 percent adjustment is made for high-risk projects, and a 2 percent adjustment is made for low-risk projects. If the above projects are independent, which project(s) should CCC purchase?
 

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Project A B C IRR 9.0% 10.0 12.0 Risk Low Average High Project A B C IRR 9.0% 10.0 12.0 Risk Low Average High

Answer rating: 100% (QA)

Required solution Answerproject b should be undertaken explaian... View the full answer