Question: LaPango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 9%, 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 9%, and its above-average risk projects have a WACC of 11%. Which of the following projects (A, B, and C) should the company accept?

Group of answer choices

Project B, which is of below-average risk and has a return of 8.5%.

Project A, which is of average risk and has a return of 9%.

All of the projects should be accepted.

Project C, which is of above-average risk and has a return of 12%.

None of the projects should be accepted.

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