When valuing a project that is not scale enhancing, an analyst will typically need to:

a) calculate the equity cost of capital using the risk-adjusted beta of another firm.

b) double the firms beta value when computing the project WACC.

c) apply the firms current WACC to the projects cash flows.

d) discount the projects cash flows using the market rate of return since the project will diversify the firms operations.

e) replace the risk-free rate with the market rate of return when computing the projects discount rate.