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3.[Ch 10] An all-equity firm is considering the projects shown in the table below. The T-bill rate is 7% and the market risk premium is
3.[Ch 10] An all-equity firm is considering the projects shown in the table below. The T-bill rate is 7% and the market risk premium is 9%. If the firm uses its current WACC of 16.8% to evaluate these projects, which project(s), if any, will be INCORRECTLY rejected, and which projects, if any, will be INCORRECTLY accepted?
Project Expected Return Beta
A
8.0%
0.2
B
22.0%
1.4
C
13.0%
0.8
D
17.0%
1.3
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