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An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 6 percent. Project A
An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 6 percent. Project A Expected Return 10% 20 14 18 B C D Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) Project A Project B Project C Project D Beta 0.6 1.3 1.5 1.7 % % % % Project A O Project B O 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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