Problem regarding the average risk projects

Reference no: EM131007043

Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Project A has average risk and an IRR of 9%. Project B has below-average risk and an IRR of 8.5%. Project C has above-average risk and an IRR of 11%. Which of the above independent projects should Tapley accept, assuming that the company uses the IRR method when choosing projects? Why?

Reference no: EM131007043

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