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A company has two potential projects- Project A and Project B. Information about these two projects is listed below. Beta Required Return IRR Project A
A company has two potential projects- Project A and Project B. Information about these two projects is listed below.
Beta | Required Return | IRR | |
Project A | 0.6 | 11.8% | 14% |
Project B | 1.20 | 16.6% | 16% |
The company's WACC is 15%. Should the company accept or reject these projects? Briefly explain your reasoning.
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