Your company is evaluating two projects and has collected the following information: 7% Project A Project B Expected return (IRR) 12% Risk Same as existing business Same as existing business Suggested source of financing Equity Long-term debt After-tax cost of financing 17% The company currently has a capital structure consisting of 50% equity and 50% long-term debt. 5% Part 1 8 Attempt 1/5 for 10 pts. Without doing any calculations, what should the company do and why? Accept only project B, since its cost of financing is less than project A's Accept only project A, since its expected return is greater than project B's O Look for a better reason to make a decision o Reject both projects, since their expected returns are too low Accept only project B, since its expected return is greater than its cost of financing Accept both projects, since they are not riskier than the existing business Submit IB Attempt 1/10 for 10 pts. Part 2 What is the firm's overall (after-tax) cost of capital? 3+ decimals Submit 18 Attempt 1/5 for 10 pts. Part 3 What should the firm do? Accept project B and reject project A Accept project A and reject project B Accept both projects O Something else O Reject both projects Submit