[Ch 10] An all-equity firm is considering the projects shown in the table below. The T-bill rate is 0.50% and the market risk premium is 9.00%. The firm's current (composite) WACC is 8.00%. Project A B Expected Return 3.00% 9.00% 10.10% 20.00% Beta 0.1 0.5 1.5 1.9 C D A) If the firm evaluates projects using its composite WACC, then which projects will be ACCEPTED and which will be REJECTED? B) Now, suppose the firm adjusts for risk (like it should) and calculates its risk-appropriate (or risk-adjusted) WACC. Using this risk-appropriate WACC, which projects will be ACCEPTED and which will be REJECTED? [HINT: The pre-recorded lecture mentions how to calculate the risk-appropriate WACC for this type of firm. Please go back to the lecture and/or the Ch 10 MS PowerPoint slides.]