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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