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Fancy Treats Inc. has an overall cost of capital of 10%. The company is considering the following projects: Project Beta IRR (actual project return) A

Fancy Treats Inc. has an overall cost of capital of 10%. The company is considering the following projects:

Project

Beta

IRR (actual project return)

A

1.2

13%

B

0.5

8.5%

C

0.85

10%

The T-bill rate is 4%, and the expected return on the market is 12%. Which project(s) should the firm accept?

A. Reject A, Reject B, Accept C

B. Reject A, Accept B, Reject C

C. Accept A, Reject B, Reject C

D. Accept A, Reject B, Accept C

E. Accept A, Accept B, Reject C

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