Question: Hampton is considering the following projects for the coming year: Project Size ($MM) IRR (%) A 70 13.0 B 105 12.7 C 115 13.2 D
Hampton is considering the following projects for the coming year:
| Project | Size ($MM) | IRR (%) |
| A | 70 | 13.0 |
| B | 105 | 12.7 |
| C | 115 | 13.2 |
| D | 125 | 13.0 |
| E | 85 | 11.7 |
| F | 75 | 12.3 |
| G | 80 | 11.5 |
Hamptons WACC is 12%. Assume that each of the projects is as risky as the firms existing assets, and Project C and Project D are mutually exclusive while the rest are of the projects are independent. What set of projects should be accepted if NPVC = $20 million and NPVD = $35 million, and what is the firms optimal capital budgeting for the coming year?
Group of answer choices
A, B, C, F ; $365 million
A, C, D ; $310 million
A, B, C, D ; $415 million
A, B, D, F ; $375 million
A, B, C, D, F ; $490 million
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