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Hendrickson Systems is considering the following independent projects for the coming year: Project Required Investment...

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Hendrickson Systems is considering the following independent projects for the coming year: Project Required Investment Expected Rate of Return Risk Y Z $6 million 8 million 3 million 12.09 12.0% 9.5% High Average Low Hendrickson's WACC is 11 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects. Which project(s) should Hendrickson accept assuming it faces no capital constraints? O a. Projects X and Y Project Investment Expected Rate of Return Risk Y Z $6 million 8 million 3 million 12.0% 12.096 9.596 High Average Low Hendrickson's WACC is 11 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects. Which project(s) should Hendrickson accept assuming it faces no capital constraints? O a. Projects X and Y O b. Project X only O c. Project Z only O d. Projects Y and Z O e. Project Y only

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