CTRL + to see clearly

DROP DOWN OPTIONS

1) yeso

2) yeso

3) thus, only project S/ only project L / both projects / neither projects

4. Practice Problem 11-4 ED eBook Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $150,000 and has an IRR equal to 8 percent, and Project L costs $140,000 and has an IRR equal to 6 percent. OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are rat = 4%, rs = 8%, and re = 10.5%. If OTC expects to generate $220,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place. WACC Acceptable? Project S % -Select- L % -Select- Thus, -Select- should be purchased