Weston Industries is considering the following independent projects for the coming year:

Project	Required Investment	Expected Rate of Return	Risk
X	$7 million	10.5%	High
Y	3 million	11.5%	Average
Z	4 million	9.5%	Low

Westons WACC is 10 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects. Which project(s) should Weston accept assuming it faces no capital constraints?

a.

Project Z only

b.

Project Y only

c.

Projects X and Y

d.

Project X only

e.

Projects Y and Z