A company with an average WACC of 10% adjusts for risk by adding 2% for high risk projects and subjecting 2% for low risk projects. Which of the
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A company with an average WACC of 10% adjusts for risk by adding 2% for high risk projects and subjecting 2% for

low risk projects. Which of the following projects should the company accept?

A)An average risk project with an IRR of 10%

B)Low risk project with an IRR of 7%

C)High risk project with an IRR of 13%

D)High risk project with IRR of 11%

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Project A and... View the full answer

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