On-line Text Co. has four new text publishing products that it must decide on publishing to expand its services. The firm's WACC has been 17%. The projects are of equal risk, s of 1.6. The risk-free rate is 7% and the market rate is expected to be 12%. The projects are expected to earn as follows: i. Project W: 14% ii. Project X: 18% iii. Project Y: 17% iv. Project Z: 15%

Justify which projects should be selected and give reason.

Does current WACC rate of 17% is irrelevant or relevant? Justify your answer