Question $7$

$0\mathrm{.}2$ pts

A firm has two vastly different lines of business: X and Y $.$ The X line is the riskiest of the two, and accounts for $67$ percent of the firm's sales. When deciding which project proposals should be accepted, the managers should:

allocate the compary's funds to the projects with the highest net present values based on the company's weighted average cost of capital.

assign appropriate, but differing, discount rates to each business line and then select the projects with the highest net present values.

atocatie more funds to x since it it the laggest line of business.

fund the highest net present value projects from each line of business based on an allocation of $67$ percent of the funds to $x$ and the remainder to $Y.$

fund all of Y$\text{'}$s profects frost since they toind to be less risky and then allocate the remaining funds to the X projects that have the highest net present values.

$0\mathrm{.}2$ pts