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OPTIMAL CAPTTAL BUDGET Marble Construction estimates that its WACC is 10% if equity comes from
Project | Size | |
A | $ 650,000 | 14.0% |
B | 1,050,000 | 13.5 |
C | 1,000,000 | 11.2 |
D | 1,200,000 | 11.0 |
E | 500,000 | 10.7 |
F | 650,000 | 10.3 |
G | 700,000 | 10.2 |
Assume that each of these projects is independent and that each is just as risky as the firm's existing assets. Which set of projects should be accepted, and what is the firm's optimal capital budget?
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Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
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