An all-equity firm is considering the projects shown in the table below. The T-bill rate is 0.5% and the market risk premium is 12%. The firm's current (composite) WACC is 8%.

Project	Expected Return	Beta
A	4.5%	0.15
B	6.25%	0.5
C	16.25%	1.25
D	20%	1.95

PART I Recall from class that firms may use their composite WACC to evaluate projects, i.e. decide to accept/reject those projects. Using the composite WACC, please select whether you will ACCEPT or REJECT each of the above 4 projects. If you are indifferent between accepting and rejecting the project, then please indicate that you ACCEPT the project.

PART II

Now, please also recall from the Chapter 10 lecture (and MS PowerPoint slides) that firms SHOULD adjust for risk-level of each individual project. That is, firms should use the risk-appropriate (or risk-adjusted) WACC as discussed in class. Using this risk-appropriate WACC, please select whether you will ACCEPT or REJECT each of the above 4 projects. If you are indifferent between accepting and rejecting the project, then please indicate that you ACCEPT the project.