Find if it generates the rate of return required, compare it with CAPM, required return of the firm If the rate of return is higher, then profit will be generated Therefore there will be positive NPV Find out the actual return, given with beta, by using CAPM as well -> find return for project A, repeat for project B; you are given details on the sheet Compare the actual return with the rate stated on the question; then also compare to WACC; determine if it is correctly/incorrectly accepting/rejecting.