Wagner inc estimates that its average-risk projects have a

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Wagner Inc estimates that its average-risk projects have a WACC of 10%, its below-average 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?

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

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

c. Project C is of above-average risk and has a return of 11%.

d. None of the projects should be accepted.

e. All of the projects should be accepted.

Reference no: EM13574961

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