This question seems to have little discussion...but doesn't seem as straightforward than at first glance.  I would assume that each of the projects for each of the companies has a unique opportunity cost of capital.  I would also assume that the opportunity cost of capital is less than or equal to the yield.  Therefore, isn't the $10 million the npv of each of the projects?  This would mean that the decision maker would be indifferent toward any of the projects, and only the decision maker's risk tolerance would affect the project selected, as the risk is built into the yield of the project. 

So... W would invest in both projects as all $20 mil must be invested, and Y and Z would be indifferent.

Please let me know if I'm overthinking, or thinking incorrectly.

Thanks!

Sorry, the topic refers to 1.1, but I meant 1.2A

[NEAS: This question deals with borrowing and investment, not with risk. The modules on risk and return add the effects of risk. For this exercise, assume all the projects have the same risk.]