firm's typical project, what rate shord flows? SML and WACC An all-equity firm is considering the following projec 3. IRR Beta .80 .95 1.15 1.45 Project 9.4% 10.9 13.0 14.2 The T-bill rate is 3.5 percent, and the expected return on the market is 11 percnt. a. Which projects have a higher expected return than the firm's 11 percent cost capital? b. Which projects should be accepted? c. Which projects would be incorrectly accepted or rejected if the firm's overall cost capital was used as a hurdle rate