Lafarge inc estimates that its average-risk projects have a, Ask an Expert

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Lafarge 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 B, which is of below-average risk and has a return of 8.5%.
b. Project C, which is of above-average risk and has a return of 11%.
c. Project A, which is of average risk and has a return of 9%.
d. None of the projects should be accepted.
e. All of the projects should be accepted.

1. Project B, which is of below-average risk and has a return of 8.5%
2. Project C, which is of above-average risk and has a return of 11%.
3. Project A, which is of average risk and has a return of 9%
4. None of the projects should be accepted
5. All of the projects should be accepted

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Category:- Basic Finance
Reference No.:- M9792212

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