Swizer Industries has two separate divisions. Division X has less risk, so its projects are assigned a discount rate equal to the firm's WACC minus $\mathrm{.}75$ percent. Division Y has more risk, and its projects are assigned a rate equal to the firm's WACC plus $1$ percent. The company has a debt$-$equity ratio of $\mathrm{.}48$ and a tax rate of $21$ percent. The cost of equity is $15\mathrm{.}4$ percent and the aftertax cost of debt is $5\mathrm{.}4$ percent. Presently, each division is considering a new project. Division Y$\text{'}$s project provides a return of $12\mathrm{.}9$ percent while Division X$\text{'}$s project is expected to earn $11\mathrm{.}5$ percent. Which project$($s$),$ if any, should the company accept?

Group of answer choices

Accept both X and Y

Accept X and reject Y

Reject X and accept Y

Reject both X and Y

The answer cannot be determined based on the information provided.