Problem 12-17 ML and WACC [LO 4] An all-equity firm is considering the following projects: Project Beta .70 .85 1.25 1.75 IRR 10.0% 10.5 14.0 17.0 The T-bill rate is 5 percent, and the expected return on the market is 12 percent. Required: (a) Which projects have a higher expected return than the firm's 12 percent cost of capital? Project W has a (Click to select) expected return, Project X has a (Click to select) expected return, Project Y has a (Click to select) expected return, and Project Z has a (Click to select) expected return. (b) Which projects should be accepted? , Project Y should be Project W should be (Click to select) Project X should be (Click to select) (Click to select) , and Project Z should be (Click to select) (c) Which projects will be incorrectly accepted/rejected or correctly accepted/rejected if the firm's overall cost of capital were used as a hurdle rate? Project Y Project W would be (Click to select) , Project X would be (Click to select) would be (Click to select) , and Project Z would be (Click to select)