Cedar Computer Systems Inc

question 35

Multiple Choice

Cedar Computer Systems Inc.has two projects under consideration and a WACC of 10%.Project Alpha has a hurdle rate of 12% while project Beta has a hurdle rate of 8%.If project Alpha has an expected return of 11% and project Beta has an expected return of 11%,which project(s) ,if any,should the firm accept?

• A)Project Alpha
• B)Project Beta
• C)Projects Alpha and Beta
• D)Neither project should be accepted.

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Definitions:

Hydrogenation

A chemical reaction where hydrogen is added to double or triple bonds in an organic compound, often resulting in saturated compounds.

2-Pentene

An alkene with the formula C5H10, featuring a double bond between the second and third carbon atoms.

Pentane

A straight-chain alkane with the formula C5H12, used as a solvent in the laboratory and as a standard in certain types of chromatography.

Mass Spectrum

A graph or chart that displays the distribution of ions by mass in a sample, providing information about the molecular weight and structure of compounds.