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 aboveaverage 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 aboveaverage risk projects have a WACC of 12%. Which of the following projects (A,B, and C) should the company accept? a. Project B, which is of below-average risk and has a return of 8.5W. b. Project A, which is of average risk and has a return of 9%. c. Project C, which is of above average risk and has a return of 11%. d. None of these projects should be accepted. e. All of these projects should be accepted
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