Question

********NEED IT ASAP****** THANKS                       Beta    IRR Project 1       &nbsp

********NEED IT ASAP****** THANKS

                      Beta    IRR

Project 1        0.3      3%

Project 2        0.6      7%

Project 3        0.8      11%

The expected return on the market is 10%.

The risk-free rate is 2%.

The weighted average cost of capital is 8% for all 3 projects.

Which project will be incorrectly rejected?

A.

Project 1

B.

Project 2

C.

Project 3

D.

None

Homework Answers

Answer #1

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