(10 pts) 4. As 4 As CFO of Falcon Energy Company (FEC), you are evalunting the following four projects Project Beta 0.5 0.8 1.4 2.0 Projected (Estimated) Return 9.1% 10.3% 18.2% 21.4% Currently, the 3 month Treasury bill rate is 3%, and the market risk premium is 10%, FEC's current practice is to apply its WACC of 12% as a single cut-off rate to all projects. (1) Criticize the company's current practice in selecting projects; (2) discuss the consequences of following this practice over and over again; and (3) determine which project(s) of the four projects above would be incorrectly accepted or incorrectly rejected if the firm's current practice is applied to the four projects? (Hint: Measure RADR of each project using the CAPM)