PLEASE HELP ME WITH QUESTION 5!

5. The Wraith Food Company is an all equity financed firm. Its stock beta is 1.40, while the risk-free rate is 2% and the market expected risk premium is 5%. The firm's CFO considers several projects. He decides to follow the hurdle rate test, comparing the project's return to the firm's cost of capital. Which of the projects will he reject incorrectly, and which will he accept incorrectly? Hint! You can present the hurdle rate decision side by side with the NPV or IRR decision. Conflict between the two method, will mark incorrect decision. 6. Burger World Inc considers an expansion project. It currently has 10 million outstanding shares trading at $30 per share. Equity has an estimated beta of 1.2. The risk-free rate is 2%, 5. The Wraith Food Company is an all equity financed firm. Its stock beta is 1.40, while the risk-free rate is 2% and the market expected risk premium is 5%. The firm's CFO considers several projects. He decides to follow the hurdle rate test, comparing the project's return to the firm's cost of capital. Which of the projects will he reject incorrectly, and which will he accept incorrectly? Hint! You can present the hurdle rate decision side by side with the NPV or IRR decision. Conflict between the two method, will mark incorrect decision. 6. Burger World Inc considers an expansion project. It currently has 10 million outstanding shares trading at $30 per share. Equity has an estimated beta of 1.2. The risk-free rate is 2%