Project Discount Rates: The Pure-Play Beta for Bloomberg Press

Write $\bar{R}_{\text{project}} = R_f + \beta_{\text{project}}(\bar{R}_m - R_f)$ and record that one company-wide cost of capital is generally wrong, with Bloomberg's technology multiple versus a publisher's as the example.

Define a pure play, record the choice of Wiley over McGraw-Hill as the comparable, and describe building a range of comparables across sizes and structures before applying judgment.

Compute $\bar{R}_{\text{project}} = 0.05 + 1.29 \times 0.06 = 12.7\%$ from Wiley's beta, and record what a positive NPV at that hurdle rate says about the project's return.