Advise the management of galgate

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Galgate is considering project A and project B. Project A has a beta of 0.3 and an expected return of 6%. Project B has a beta of 1.7 and an expected return of 12%. Would you advise the management of Galgate to proceed with the projects? Which project(s) would be incorrectly accepted or rejected if the firm's weighted cost of capital (WACC) is used as a hurdle rate?

Reference no: EM132758251

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