Business, 12.12.2019 04:31 swaggg8300

The managers of kenforest grocers are trying to determine the company s optimal capital budget for the upcoming year. kenforest is considering the following projects: project size rate of return risk a $200,000 16% high b $500,000 14% average c $400,000 12% low d $300,000 11% high e $100,000 10% average f $200,000 10% low the company estimates that its wacc is 11 percent. all projects are independent. the company adjusts for risk by adding 2 percentage points to the wacc for high-risk projects and subtracting 2 percentage points from the wacc for low-risk projects. which of the projects will the company accept? a. a, b, c, e, f b. b, d, f c. a, b, c, e d. a, b, c, d, e e. a, b, c, f

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