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%.
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
Project B, which has below-average risk and an
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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