Northern Boat Mfg., Inc. has a weighted average cost of capital (WACC) of 16.8 percent, given the firm’s current boat-making operations. Home Builders, Inc. has a WACC of 14.4 percent, given that the firm builds new, single-family homes. Both firms are considering projects that would entail the construction of new, suburban, single-family homes. The projects for both firms have an estimated rate of return of 15.9 percent. Which firm(s), if either, should accept their building project?
A .neither firm
B. Home Builder’s, Inc. only
C. both firms
D. Northern Boat Mfg. Only