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.