7. 1. 50 The I- bill rate is 5 percent , and the expected return on the market is 12 percent . ASSUME the company's overall WALL is 1290 . 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 over - all cost of capital were used as a hurdle rate