Project Beta Expected Return in %
1 0.65 10
2 0.85 12
3 1.00 13
4 1.25 14
5 1.50 15
RF = 3%; The Equity Risk Premium is 7% and the WACC is 10%.
a. List projects that you would accept.
b. Which projects have been rejected usinf the cost of capital as a hurdle rate?