An all$-$equity firm is considering the following projects:

$\backslash$table$[[$Project$,$Beta,IRR$],[$W$,\mathrm{.}51,10\mathrm{.}48],[x,\mathrm{.}94,10\mathrm{.}9],[$Y$,1\mathrm{.}06,14\mathrm{.}4],[$z$,1\mathrm{.}78,17\mathrm{.}4]]$

The T$-$bill rate is $5\mathrm{.}4$ percent, and the expected return on the market is $12\mathrm{.}4$ percent.

a$.$ Which projects have a higher$/$lower expected return than the firm's $12\mathrm{.}4$ percent cost of capital? Hint: remember that this firm is all equity financed.

$\backslash$table$[[$Project $W$ has a$,$expected return, Project $x$ has a$,,$expected return, Project $Y$ has a$],[$expected return, and Project $Z$ has a$,,$expected return.,$]]$

b$.$ Which projects should be accepted? Hint: remember from a prior chapter that you should accept a project where its IRR is $>$ the cost of capital.

$\backslash$table$[[$Project W should be$,$Project $x$ should be$],[$Project Y should be$,,$ and Project $Z$ should be$]]$