An all-equity firm is considering the following projects:

The T bill rate is 4%, and the expected return on the market is 12%.

A. Which projects have the higher expected return than the firm's 12% cost of capital?

B. Which projects should be accepted?

C. Which projects will be incorrectly accepted or rejected if the firm's overall cost of capital were used as a hurdle rate?

Project W X Beta 0.80 0.90 1.10 1.35 IRR 9.3% 11.4% 12.1% 15.1% Y Z