Question: You are evaluating the following four projects: Project Beta Projected (or Expected) Return 19.5% A 1.80 B 1.20 14.0% 0.80 11.5% D 0.50 9.0% Your

You are evaluating the following four projects: Project Beta Projected (or Expected) Return 19.5% A 1.80 B 1.20 14.0% 0.80 11.5% D 0.50 9.0% 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 rejected? Currently, the 3-month Treasury bill rate is 3%, and the market risk premium is 10%. (Hint: Measure the RADRs using the CAPM.) At least two of the projects are incorrectly rejected OD OB loc

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