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Eves of the World Corporation has traditionally exployed a firm wide discount rate for capital budgeting perpores However, tos two divisums - publushung and entertainment

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Eves of the World Corporation has traditionally exployed a firm wide discount rate for capital budgeting perpores However, tos two divisums - publushung and entertainment - have different degrees of nsk given by P=1.0, DE =20, and the beta for the oveall firm is 1.3. The firm is conssdering the following capital expenditures: Which projects would it accept if it estimates cost of capstal separately for each divisson? Use 6% as the nukfree rate and 1246 as the expected return on the market. 1,P2,P3

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