Taylor Inc. estimates that its average$-$risk projects have a WACC of $10\%,$ its below$-$

averaoe 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?

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

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

None of the projects should be accepted.

All of the projects should be accepted.

Project $B,$ which is of below$-$average risk and has a return of $8\mathrm{.}5\%.$