Taylor Inc

question 76

Multiple Choice

Taylor 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 c, which is of above-average risk and has a return of 11%.
• B) project a, which is of average risk and has a return of 9%.
• C) none of the projects should be accepted.
• D) all of the projects should be accepted.
• E) project b, which is of below-average risk and has a return of 8.5%.

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Definitions:

Emigrate

The act of leaving one's country or region to settle in another.

Industrial Training

Educational and training programs focused on developing the skills and knowledge necessary for employment in industries and manufacturing.

Curriculum

The subjects comprising a course of study in a school or college.

Hampton Institute

Now known as Hampton University, it is a historically Black university located in Hampton, Virginia, established in 1868 to educate freed slaves.