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Determining the average-risk projects

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Reference no: EM133110431

LaPango 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 B, which is of below-average risk and has a return of 8.5%.

b. None of the projects should be accepted.

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

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

e. All of the projects should be accepted.

Reference no: EM133110431

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