Question 2(10 marks) Cost of Capital An all-equity firm is considering the following projects:- Project Beta We 0.554 Xe 0.904 Ye 1.104 ze 1.50 IRR (%) 10.04 10.52 14.04 17.02 The T-bill rate is 5.0 percent and the expected return on the market is 12.0 percent. Required:- (a) (b) Which project/s should be accepted? Use the SML of the project to determine which projects should be accepted. Which project/s should be accepted if the firm's overall cost of capital was used as a hurdle rate for all projects? Compare the answers in (a), explain if there is inconsistency. H