You are evaluating the following four projects: Project Beta Projected (or Expected) Return A 1.80 19.5% B 1.20 14.0% C 0.80 11.5% D 0.50 7.0% Your company’s current practice is to apply its WACC of...

You are evaluating the following four projects:

Your company’s current practice is to apply its WACC of 12% as a single hurdle rate to all projects.  Under your company’s current practice, which project(s) of the four projects above would be incorrectly accepted? Currently, the 3-month Treasury bill rate is 3%, and the market risk premium is 10%. (Hint: Measure the RADRs using the CAPM.)