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 a All of the projects should be accepted b Project A, which is of average risk and has a return of 9 c Project B, which is of below average risk and has a return of 8 5 d None of the projects should be accepted e Project C, which is of above average risk and has a return of 11

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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?

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

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