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An All-Equity Firm Is Considering the Projects Shown as Follows

Question 11

Multiple Choice

An all-equity firm is considering the projects shown as follows.The T-bill rate is 3 percent and the market risk premium is 6 percent.If the firm uses its current WACC of 12 percent to evaluate these projects,which project(s) will be incorrectly rejected?
An all-equity firm is considering the projects shown as follows.The T-bill rate is 3 percent and the market risk premium is 6 percent.If the firm uses its current WACC of 12 percent to evaluate these projects,which project(s) will be incorrectly rejected? A) Project A B) Projects B and C C) Project D D) Project B


A) Project A
B) Projects B and C
C) Project D
D) Project B

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