LaPango Inc

question 93

Multiple Choice

LaPango Inc.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 B,which is of below-average risk and has a return of 8.5%.
• B) Project C,which is of above-average risk and has a return of 11%.
• C) Project A,which is of average risk and has a return of 9%.
• D) None of the projects should be accepted.
• E) All of the projects should be accepted.

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Definitions:

Eosinophil

A type of white blood cell involved in the body's immune response, particularly known for its role in combating multicellular parasites and certain infections.

Spleen Rupture

A break or tear in the spleen, often due to injury, which can lead to internal bleeding and require urgent medical attention.

Left Hypochondriac Region

An area of the abdomen located to the left of the epigastric region and above the left lumbar region, containing parts of the stomach and the left kidney.

Left Iliac Region

An area of the abdomen on the left side that is bounded by the iliac crest; often associated with parts of the colon and small intestine.