8. Bob's Warehouse is considering the following projects:

Project

Beta

IRR(actual project return)

X

0.6

9.8%

Y

0.8

11%

Z

1.15

16%

Bob's Warehouse is an all-equity firm. The T-bill rate is 2.5%, and the expected return on the market is 14%. The firm has an equity beta =1. Which project(s) should the firm accept?

A. Reject X, Accept Y, Accept Z

B. Reject X, Reject Y, Accept Z

C. Accept X, Reject Y, Reject Z

D. Accept X, Reject Y, Accept Z

E. Accept X, Accept Y, Reject Z