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An all-equity firm is considering the projects shows below. The T-bill rate is 4 percent and the market risk premium is 7 percent. If the

An all-equity firm is considering the projects shows below. The T-bill rate is 4 percent and the market risk premium is 7 percent. If the firm uses its current WACC of 12 percent to evaluate these projects, which project(s), if any, will be incorrectly rejected?

Project Expected Return Beta

A 8.0% 0.2

B 19.0 1.4

C 13.0 0.8

D 17.0 1.3

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