Bergeron Microcomputers is considering the following indepen…
Bergeron Microcomputers is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $2 million 14.5% High Y 4 million 13.5% Average Z 7 million 8.5% Low Bergeron’s WACC is 12 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 Bergeron accept assuming it faces no capital constraints?