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An all-equity firm is considering the projects shown below. The T-bill rate is 5 percent and the market risk premium is 8 percent. Project Expected

An all-equity firm is considering the projects shown below. The T-bill rate is 5 percent and the market risk premium is 8 percent.

Project Expected Return Beta
A 8 % 0.3
B 20 % 1.1
C 14 % 1.3
D 18 % 1.5

Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.)

Project A %
Project B %
Project C %
Project D %

If the firm uses its current WACC of 13 percent to evaluate these projects, which project, will be incorrectly rejected?

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