62 476
Assignments Done
98,9%
Successfully Done
In June 2018

Answer to Question #12986 in Economics of Enterprise for Sarah

Question #12986
. LaPango 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?
Expert's answer
Level of risk can show profitability of project. If company accept above-average risk project it can benefit more than accepting below-average risk project.
It is more common to accept below-average risk project

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions