Takelmer Industries Has a Different WACC for Each of Three

question 81

Multiple Choice

Takelmer Industries has a different WACC for each of three types of projects.Low-risk projects have a WACC of 8.00%,average-risk projects a WACC of 10.00%,and high-risk projects a WACC of 12%.Which of the following projects do you recommend the firm accept? $$\begin{array} { | c | c | c | } \hline \text { Project } & \text { Level of Risk } & \text { IRR } \\\hline \text { A } & \text { Low } & 9.50 \% \\\hline \text { B } & \text { Average } & 8.50 \% \\\hline \text { C } & \text { Average } & 7.50 \% \\\hline \text { D } & \text { Low } & 9.50 \% \\\hline \text { E } & \text { High } & 14.50 \% \\\hline \text { F } & \text { High } & 17.50 \% \\\hline \text { G } & \text { Average } & 11.50 \% \\\hline\end{array}$$

• A)A,B,C,D,G
• B)B,C,E,F,G
• C)A,D,E,F,G
• D)A,B,C,D,E,F,G

---

Definitions:

Demographic Attributes

Characteristics of populations, such as age, race, gender, income level, and educational attainment, used in various analyses including market research and sociological studies.

Social Plans

Plans developed by organizations to facilitate social interaction and satisfaction among employees, enhancing workplace culture.

Legalistic

An approach or behavior that is strictly focused on adhering to the letter of the law or rules, often with little flexibility.

Mediation

A method of conflict resolution where a neutral third party assists the disputing parties in reaching a mutually acceptable agreement.