Hendrickson Industries is considering the following independ…
Hendrickson Industries is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $8 million 13.5% High Y 4 million 10.0% Average Z 3 million 7.5% Low Hendrickson’s WACC is 10.5 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?