Question: Hampton is considering the following projects for the coming year: Project Size ($MM) IRR (%) A 70 12.0 B 105 12.7 C 115 13.2 D
Hampton is considering the following projects for the coming year:
| Project | Size ($MM) | IRR (%) |
| A | 70 | 12.0 |
| B | 105 | 12.7 |
| C | 115 | 13.2 |
| D | 125 | 13.0 |
| E | 85 | 12.7 |
| F | 75 | 12.3 |
| G | 80 | 13.5 |
Hamptons WACC is 12.5%. Assume that each of the projects is as risky as the firms existing assets, and Project D and Project E are mutually exclusive while the rest are of the projects are independent. What set of projects should be accepted if NPVD = $20 million and NPVE = $35 million,and what is the firms optimal capital budgeting for the coming year?
Group of answer choices
B, C, G ; $300 million
B, C, D, E, G ; $505 million
B, C, E, G ; $385 million
C, D, E, F, G ; $480 million
B, C, D, G ; $415 million
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