1. XYZ Environmental Steam Ltd is evaluating two conventional, independent capital budgeting projects (X and Y). Project X has an internal rate of return of 16% while project Y's rate of return is 12%. The appropriate risk-adjusted discount rate for Project X is 18%, while for Project Y it is 10%. The company's overall, weighted average cost of capital is 14%. Which projects should XYZ accept and reject? Include a reason for your answer. (4 marks) Decision Reason Project X Project Y (Anything written outside the box will not be read or marked.)