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An all-equity firm is considering the projects shown in the table below. The T-bill rate is 3% and the market risk premium is 6%. If

An all-equity firm is considering the projects shown in the table below. The T-bill rate is 3% and the market risk premium is 6%. If the firm uses its current WACC of 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 4% .3
B 7% .5
C 9% 1.1
D 13% 1.4

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