World Corporation has traditionally employed a firm-wide discount rate for capital budgeting purposes. However, its two divisions, publishing and entertainment, have different degrees of risk given by P = 1.1, E = 1.8, while the beta for the overall firm is 1.3. The publishing division has proposed three projects with the following internal rates of return: P1 = 13.2 percent; P2 = 12.4 percent; and P3 = 9.8 percent. The entertainment division has presented their three projects: E1 = 16.4 percent; E2 = 17.8 percent; and E3 = 14.7 percent. The risk-free rate is 4 percent, and the market risk premium is 8 percent. Identify which projects will be accepted if the firm applies its overall beta to all projects. Then identify which projects will be accepted if the division betas are properly applied