Vang Enterprises,which Is Debt-Free and Finances Only with Equity from Retained

question 3

Multiple Choice

Vang Enterprises,which is debt-free and finances only with equity from retained earnings,is considering 7 equal-sized capital budgeting projects.Its CFO hired you to assist in deciding whether none,some,or all of the projects should be accepted.You have the following information: r_RF = 4.50%;RP_M = 5.50%;and b = 0.98.The company adds or subtracts a specified percentage to the corporate WACC when it evaluates projects that have above- or below-average risk.Data on the 7 projects are shown below.If these are the only projects under consideration,how large should the capital budget be? ​

• A) $100
• B) $125
• C) $25
• D) $50
• E) $75

---

Definitions:

Invalidation Strategies

Tactics employed to make someone feel their thoughts, feelings, or experiences are wrong or irrelevant.

Accepting

The act of receiving or consenting to something or someone, often referring to the unconditional acceptance of an individual's thoughts and feelings in therapeutic contexts.

Changing

The process of making or becoming different, often in context to personal development, habits, or life circumstances.

Meditative Therapies

Forms of therapy that incorporate meditation practices to promote mental health and well-being.