13. SML and WACC An all-equity firm is considering the following projects: Beta IRR Project w X Y Z .75 .90 1.15 1.45 9.4% 11.2 14.1 15.5 The T-bill rate is 3.5 percent and the expected return on the market is 12 percent. a. Which projects have a higher expected return than the firm's 12 percent cost of capital? b. Which projects should be accepted? c. Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital was used as a hurdle rate? da su