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An All-Equity Firm Is Considering the Projects Shown Below

Question 8

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An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 9 percent. If the firm uses its current WACC of 14 percent to evaluate these projects, which project(s) will be incorrectly rejected? An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 9 percent. If the firm uses its current WACC of 14 percent to evaluate these projects, which project(s)  will be incorrectly rejected?   A)  Project A B)  Project B C)  Project C D)  Project D


A) Project A
B) Project B
C) Project C
D) Project D

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