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[Ch 10] An all-equity firm is considering the projects shown in the table below. The T-bill rate is 7% and the market risk premium is 9%. If the firm...

3.[Ch 10] An all-equity firm is considering the projects shown in the table below. The T-bill rate is 7% and the market risk premium is 9%. If the firm uses its current WACC of 16.8% to evaluate these projects, which project(s), if any, will be INCORRECTLY rejected, and which projects, if any, will be INCORRECTLY accepted?

Project Expected Return Beta

A

8.0%

0.2


B

22.0%

1.4


C

13.0%

0.8


D

17.0%

1.3

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