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ADJUSTING COST OF CAPITAL FOR RISK Ziege Systems is considering the following independent projects for...

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ADJUSTING COST OF CAPITAL FOR RISK Ziege Systems is considering the following independent projects for the coming year Required Rate of Risk High High Low Average High Average Low Low Project Investment Return $4 million 5 million 3 million 2 million 6 million 12% 14.5 10 13 5 million 13 6 million 3 million 12.25 Ziege's WACC is 10.50%, but it adjusts for risk by adding 296 to the WACC for high-risk projects and subtracting 2% for low-risk projects a. Which projects should Ziege accept if it faces no capital constraints? Project A Project EB Project C Project D Project E Project F Project G Reject Accept Accept Reject Accept Accept Reject

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