Q38 After-tax component costs: |
| Long-term debt | 6% | Preferred stock | 10% | Retained earnings | 15% | Net present values of four independent projects: |
| Warehouse project | $426 | Equipment project | $378 | Product line project | $0 | Inventory system project | -$185 |
If no significant size or timing differences exist among the projects and the projects all have the same risk as the company, the project with an internal ate of return closest to 10 percent is the: A. warehouse project B. equipment project C. Product line project D. Inventory system project |