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A firm's WACC is 18%. It is considering the following independent projects: X: IRR 20%, Beta 1.8 Y: IRR 16%, Beta 1.2 The risk-free rate

A firm's WACC is 18%. It is considering the following independent projects:

X: IRR 20%, Beta 1.8

Y: IRR 16%, Beta 1.2

The risk-free rate is 5% and the market risk premium is 8%. The firm should:

Accept both X and Y

Accept Y; Reject X

Accept X; Reject Y

Need more information to decide

Reject both X and Y

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