Question: Corporate Services is evaluating two independent projects. Axis is 100% equity financed. Project A has an IRR of 16% and Project B has an IRR

Corporate Services is evaluating two independent projects. Axis is 100% equity financed. Project A has an IRR of 16% and Project B has an IRR of 12%. The beta for project A, project B, and the overall firm are 1.6, 0.8, and 1.2, respectively. The risk-free rate is 2%; the expected return on the market is 12%. Given this information, company should..?

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