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Company A has WACC 10%. The firm follows a policy of adding or subtracting 3% to adjust for the risk of

Company A has WACC 10%. The firm follows a policy of adding or subtracting 3% to adjust for the risk of projects (classified as average, high, and low risk). Which of these mutually exclusive projects would you accept under this policy?

             Project A          Project B          Project C
           (low risk)           (high risk)        (average risk)
CFO     -50                                   -120                 -75
CF1       65                        150                  100
CF2       30                        175                   100
CF3       25                        190                   100 

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