S14-17 SML and WACC [LO1] An all-equity firm is considering the following projects Project Beta IRR w .85 8.9 % X .92 10.8 Y 1.09 12.8 Z 1.35 13.3 The T-bill rate is 4 percent, and the expected return on the market is 11 percent. a. Compared with the firm's 11 percent cost of capital, Project W has a expected return, Project X has a expected return, Project Y has a expected return, and Project Z has a expected return - b. Project should be , Project X should be , Project Y should be ,and Project Z should be c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be Project X would be and Project Z would be Project Y would be