Suppose tapley inc uses a wacc of 8 for below-average risk, Ask an Expert

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Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Project A has average risk and an IRR of 9%. Project B has below-average risk and an IRR of 8.5%. Project C has above-average risk and an IRR of 11%. Which of the above independent projects should Tapley accept, assuming that the company uses the IRR method when choosing projects? Why?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91723556

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