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Laramie Labs Uses a Risk-Adjustment When Evaluating Projects of Different

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Laramie Labs uses a risk-adjustment when evaluating projects of different risk.Its overall (composite) WACC is 10%,which reflects the cost of capital for its average asset.Its assets vary widely in risk,and Laramie evaluates low-risk projects with a WACC of 8%,average-risk projects at 10%,and high-risk projects at 12%.The company is considering the following projects: Laramie Labs uses a risk-adjustment when evaluating projects of different risk.Its overall (composite) WACC is 10%,which reflects the cost of capital for its average asset.Its assets vary widely in risk,and Laramie evaluates low-risk projects with a WACC of 8%,average-risk projects at 10%,and high-risk projects at 12%.The company is considering the following projects:   Which set of projects would maximize shareholder wealth? A)  A and B. B)  A, B, and C. C)  A, B, and D. D)  A, B, C, and D. E)  A, B, C, D, and E.
Which set of projects would maximize shareholder wealth?


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