Business, 07.04.2020 16:22, taijaababy

An all-equity firm is considering the following projects: Project Beta IRR W .70 9.9 % X .77 10.9 Y 1.43 14.4 Z 1.54 17.4 The T-bill rate is 5.4 percent, and the expected return on the market is 12.4 percent.

a. Compared with the firm's 12.4 percent cost of capital, Project W has a (Click to select)higherlower expected return, Project X has a (Click to select)lowerhigher expected return, Project Y has a (Click to select)higherlower expected return, and Project Z has a (Click to select)higherlower expected return.

b. Project W should be (Click to select)rejectedaccepted , Project X should be (Click to select)rejectedaccepted , Project Y should be (Click to select)rejectedaccepted , and Project Z should be (Click to select)rejectedaccepted .

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be (Click to select)incorrectly rejectedincorrectly acceptedcorrectly rejectedcorrectly accepted , Project X would be (Click to select)correctly acceptedincorrectly acceptedincorrectly rejectedcorrectly rejected , Project Y would be (Click to select)correctly acceptedcorrectly rejectedincorrectly acceptedincorrectly rejected , and Project Z would be (Click to select)correctly rejectedincorrectly rejectedcorrectly acceptedincorrectly accepted .

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An all-equity firm is considering the following projects: Project Beta IRR W .70 9.9 % X .77 10.9 Y...