Question: You are evaluating the following four projects: Project Beta Projected (or Expected) Return A 1.80 18.0% B 1.20 16.8% C 1.00 11.5% D 0.50 9.5%

You are evaluating the following four projects:

Project	Beta	Projected (or Expected) Return
A	1.80	18.0%
B	1.20	16.8%
C	1.00	11.5%
D	0.50	9.5%

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%.

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