Question: Question 3 please Project-T Beta | IRR 85 8.9% 1.09 135 113.3% The T-bill rate is 4 percent, and the expected return on the market
Question 3 please Project-T Beta | IRR 85 8.9% 1.09 135 113.3% The T-bill rate is 4 percent, and the expected return on the market is 11 percent. a. Which projects have a higher expected return than the firm's 1 1 percent cost of capital? b. Which projects should be accepted? c. Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital were used as a burdle rate? 3. Bronco, Inc, imposes a payback cutoff of three years for its intenational investment projects. If the company has the following two projects available, should it accept either of them? Year Cash Flow (A) Cash Flow (B $45,000 $11,000 $35,000 $16,000 $255,000 $14,000 Assume the required return is 15% a. Compute the N are mutually exclusive. Which would you accept using the IRR F3 2 8 2
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