For a multi-product ﬁrm, if a project's beta is different from that of the overall ﬁrm, then the:

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The project should be discounted at a rate commensurate with its own beta, since the project's risk is not the same as that of the overall firm. The CAPM can still be used, but the discount rate should be adjusted to reflect the project's specific risk. Using the overall firm's beta (B) would not accurately reflect the project's risk. Discounting at the market rate or T-bill rate would also not account for the project's specific risk.

For a Multi-Product ﬁRm, If a Project's Beta Is Different