Suppose Tapley Corporation Uses a WACC of 8% for Below-Average

Multiple Choice

Suppose Tapley Corporation uses a WACC of 8% for below-average risk projects,10% for average risk projects,and 12% for above-average risk projects.Which independent project should Tapley accept,assuming that the company uses the NPV method when choosing projects?

A) Project A, which has average risk and an IRR of 9%
B) Project B, which has below-average risk and an IRR of 8.5%
C) Project C, which has above-average risk and an IRR of 11%
D) Without information about the projects' NPVs we cannot determine which one(s) should be accepted