LaPango Inc estimates that its average risk projects have a WACC of 10 , its below average risk projects have a WACC of 8 , and its above average risk projects have a WACC of 12 Which of the following projects (A, B, and C) should the company accept Project B, which is of below average risk and has a return of 8 5 Project C, which is of above average risk and has a return of 11 Project A, which is of average risk and has a return of 9 None of the projects should be accepted All of the projects should be accepted

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Question: LaPango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk

LaPango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%. Which of the following projects (A, B, and C) should the company accept?

		Project B, which is of below-average risk and has a return of 8.5%.
		Project C, which is of above-average risk and has a return of 11%.
		Project A, which is of average risk and has a return of 9%.
		None of the projects should be accepted.
		All of the projects should be accepted.

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