Question: You are evaluating the following four projects: Beta Project Projected Return 1.80 18.0% 16.8% B 1.20 11.5% IC 1.00 D 9.5% 0.50 Your company's current

You are evaluating the following four projects: Beta Project Projected Return 1.80 18.0% 16.8% B 1.20 11.5% IC 1.00 D 9.5% 0.50 Your company's current practice is to apply its WACC of 12% as a single hurdle rate to all projects. Under your company's current practice, which project(s) of the four projects above would be incorrectly accepted? Currently, the 3-month Treasury bill rate is 3%, and the market risk premium is 10%. (Hint: Measure the RADRs using the CAPM.) D B At least two of the projects are incorrectly accepted. A C

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