MNC Inc. is evaluating the following projects:

1. average-risk projects have a WACC of 10%,
2. below-average risk projects have a WACC of 8%,
3. above-average risk projects have a WACC of 12%.

Which of the following projects should MNC accept?

Select one:

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

b. None of the projects should be accepted

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

d. Project C, which is of above-average risk and has a return of 11%

e. All of the projects should be accepted