QUESTION $13$

$2$ point hool your WACC will also iscrease. You also thirk that the poojects will not be funded uatil the WACC has increased, and their cash flows will not be affected by the change in economic conditions. Uabor theie cooditioes, which of the following stanements is CORRECT?

$2.$ Yot thoded recommend Profets $$,$ becaone at the sew WACC in will have the higher NFV$.$

b$.$ You should recommend Project L$.$ became it will have the ligher IRR, at the sew WACC.

c$.$ You sbodd recommesd Project L$.,$ becwuse M the new WMCC if will have the higher NPV$.$

d$.$ You shoold reject both projects bexwase they will both have neguive NPV$/$ usder the new condicioss.

e$.$ You should detay a decrice until you heve more isformation on the poojects, even if this meas that a coupetion migh ceme in and captare this market.