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A company estimates that its weighted average cost of capital (WACC) is 10 percent. Which of the following independent projects should the company accept?

A. Project B has a mondified internl rate of return of 9.5%.
B. Project A requires an up-front expenditure of $1,000,000 and generates a net present value (NPV) of $3,200.
C. Project D has an internal rate of return of 9.5%.
D. Project C requires an up-front expenditure of $1,000,000 and generates a positive internal rate of return of 9.7%.

 

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