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Fashion 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
Fashion 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?
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