Question: Project Risk Expected Return A High 15% B Average 13% C Average 11% D Low 9% E Low 7% Your companys overall WACC is 10%,

Project	Risk	Expected Return
A	High	15%
B	Average	13%
C	Average	11%
D	Low	9%
E	Low	7%

Your companys overall WACC is 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and your company evaluates low-risk projects with a WACC of 8%, average-risk projects at 12.5%, and high-risk projects at 14%. If your company is considering the following projects, which set of projects would maximize shareholder wealth?

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