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Author Question: Bing Inc. estimates that its average-risk projects have a WACC of 13%, its below-average-risk ... (Read 139 times)

Apple716

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Bing Inc. estimates that its average-risk projects have a WACC of 13%, its below-average-risk projects have a WACC of 11%, and its above-average-risk projects have a WACC of 15%. Which project (A, B, C, or D) should the company accept?

Project A is of below-average risk and has a return of 10%.


Project B is of above-average risk and has a return of 14%.


Project C is of average risk and has a return of 13.5%.


Project D is of above-average risk and has a return of 13.5%.



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Marked as best answer by Apple716 on Aug 7, 2023

Khareemom14

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Apple716

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


meow1234

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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