Question: Company ABC estimates its weighted average cost of capital (WACC) is 10.5%; it has the following list of capital budgeting projects (and their associated rates of return); each project's projected cost is $1 million. Which projects should it undertake?
| Project |
Rate of Return |
| A |
12.0% |
| B |
11.5% |
| C |
10.5% |
| D |
10.2% |
| E |
10.7% |