Bloom and Co. has no debt or preferred stock it uses only equity capital, and has two equally sized divisions. Division X's cost of capital is 10.0%, Division Y's cost is 14.0%, and the corporate (composite) WACC is 12.0%. All of Division X's projects are equally risky, as are all of Division Y's projects. However, the projects of Division X are less risky than those of Division Y. Which of the following projects should the firm accept?

a. A Division Y project with a 12% return.

b. A Division X project with an 11% return.

c. A Division X project with a 9% return.

d. A Division Y project with an 11% return.

e. A Division Y project with a 13% return.