Question: Frmwide vs. Project - Specific WACCs An all - equity firm is considering the projects shown as follows . The T- bill rate is 4

Frmwide vs. Project - Specific WACCs An all - equity firm is considering the projects shown as follows . The T- bill rate is 4 percent and the market risk premium is 7 percent . If the firm uses its current WACC of 12 percent to evaluate these projects , which project ( s ) , if any , will be incorrectly accepted ?

Project Expected Return (Beta)

A 8.0 % (0.5)

B 19.0% (1.2 )

C 13.0% (1.4)

D 17.0% (1.6)

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