company with an average WACC of 10% adjusts for risk by adding 2%
company with an average WACC of 10% adjusts for risk by adding 2%
for high risk projects and subjecting 2% for low risk projects. Which of the following projects should the company accept?
An average risk project with an IRR of 10%
Low risk project with an IRR of 7%
High risk project with an IRR of 13%
High risk project with IRR of 11%