An all-equity firm, Poly Inc., is considering the following projects: Proposed Project Beta IRR A 0.2 7.5% B 0.5 8.0% C 0.8 11.8% D 1.0 12.3% E 1.1 12.5% F 1.5 18.0% The beta of the firm's stock is 0.9. Assume the risk-free rate is 5% and the market risk premium is 7%. 1) Which project(s) should Poly choose? Why? (4 points) 2) Now suppose the risk-free rate suddenly increases to 6%, should Poly change its decision on 1)? Why? Assuming the IRRS and the market risk premium are not affected by the change of risk-free rate. (4 points)