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A firm is considering three investment projects which we will refer to as A, B,...

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Finance

A firm is considering three investment projects which we will refer to as A, B, and C. Each project has an initial
cost of $10 million. Investment A has IRR of 16%, investment B hass IRR of 8%, and investment C has IRR of
12%. The applicable discount rate for the three project is the same. It will be 6% if the firm borrows $10
million, 10% if it the firm borrows $20 million, and 15% if the firm borrows $30 million. Which project(s)
should the firm invest in?
Just A, because it offers the highest rate of return and is the only investment that has a rate of return higher than 15%
Non of the given answers is correct
All three should be undertaken, because the rate of return on B is above 6%, on C is above 10%, and on A above 15%.
Only A and C should be undertaken be:
use both have rates of return that are greater than 10%.
please show all the steps and explanation to answer

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