On-Line Text Co $\bullet$ Project W: 14 $\bullet$ Project X: 18 $\bullet$ Project Y: 17

question 17

Essay

On-line Text Co. has four new text publishing products that they must decide on publishing to expand their services. The firm's WACC has been 17%. The projects are of equal risk, ßs of 1.6. The risk-free rate is 7% and the market rate is expected to be 12%. The projects are expected to earn as follows:
$\bullet$ Project W: 14%
$\bullet$ Project X: 18%
$\bullet$ Project Y: 17%
$\bullet$ Project Z: 15%
What projects should be selected and why?

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Definitions:

Subliminal Stimulus

A Subliminal Stimulus is any sensory input that is below an individual's threshold for conscious perception, yet can influence thoughts, feelings, or actions.

Sensitivity To Constant Stimuli

The phenomenon whereby prolonged exposure to a constant stimulus leads to a decrease in the organism's response to that stimulus, also known as habituation.

Cognitive Theories

Theories that focus on belief systems and ways of thinking as the causes of abnormal behavior.

Alcohol Abuse

The harmful use of alcohol resulting in negative effects on an individual's health, relationships, and social standing.