Problem 12-17 SML and WACC [LO 4] An all-equity firm is considering the following projects: Beta 71 85 1.27 1.85 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. ProjectX has al (Click to select)I 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 W should be (Click to select). Project X should be (Click to select) (Click to select)and Project Z should be (Click to select) Project Y should be (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 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) Project Y