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. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? Group of answer choices Project A, which has average risk and an IRR = 9%. Project C, which has above-average risk and an IRR = 11%. Project B, which has below-average risk and an IRR = 8.5%. All of these projects should be accepted. Without information about the projects' NPVs we cannot determine which project(s) should be accepted.

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. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? Group of answer choices Project A, which has average risk and an IRR = 9%. Project C, which has above-average risk and an IRR = 11%. Project B, which has below-average risk and an IRR = 8.5%. All of these projects should be accepted. Without information about the projects' NPVs we cannot determine which project(s) should be accepted.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 13MC

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How do I determine which is the correct answer for this problem? A company estimates that an average-risk project has a WACC of 10 percent, a below-average-risk project has a WACC of 8 percent, and an above-average-risk project has a WACC of 12 percent. Which of the following independent projects should the company accept? a. Project A has average risk and an IRR = 9 percent. b. Project B has below-average risk and an IRR = 8.5 percent. c. Project C has above-average risk and an IRR = 11 percent. d. All of the projects above should be accepted. e. None of the projects above should be accepted. Please answer fast I give you upvote.
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. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? A. Without information about the projects' NPVs we cannot determine which project(s) should be accepted. B. Project C, which has above-average risk and an IRR = 11%. C. Project A, which has average risk and an IRR = 9%. D. Project B, which has below-average risk and an IRR = 8.5%. E. All of these projects should be accepted.
A company 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 C, which is of above-average risk and has a return of 11%. B) All of the projects should be accepted. C)Project A, which is of average risk and has a return of 9%. D)None of the projects should be accepted. E)Project B, which is of below-average risk and has a return of 8.5%.
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. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? Project B, which has below-average risk and an IRR = 8.5%. All of these projects should be accepted as they will produce a positive NPV. Without information about the projects’ NPVs we cannot determine which one or ones should be accepted. Project C, which has above-average risk and an IRR = 11%. Project A, which has average risk and an IRR = 9%. (I want see step to step to get the answer Project B, which has below-average risk and an IRR = 8.5%.
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