A company with no debt is evaluating investment in the following opportunities:ProjectBetaIRRW.8010.2%X.9011.4Y1.1012.6Z1.3515.1The risk-free rate is 4 percent, and the expected return on the market (Rm)is 12 percent (so market risk premium is 8 percent).Required:(a)Which projects have a higher expected return than the firm's 12 percent cost of capital?Project W has a

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higher

lower

expected return, Project X has a

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lower

higher

expected return, Project Y has a

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lower

higher

expected return, and Project Z has a

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lower

higher

expected return.

(b)Which projects should be accepted?Project W should be

(Click to select)

accepted

rejected

, Project X should be

(Click to select)

accepted

rejected

, Project Y should be

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accepted

rejected

, and Project Z should be

(Click to select)

accepted

rejected

.

(c)Which projects will be incorrectly accepted/rejected or correctly accepted/rejected if the firm's overall cost of capital were used as a hurdle rate?

Project W would be

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correctly accepted

incorrectly accepted

correctly rejected

incorrectly rejected

, Project X would be

(Click to select)

correctly accepted

incorrectly accepted

correctly rejected

incorrectly rejected

, Project Y would be

(Click to select)

correctly accepted

incorrectly accepted

correctly rejected

incorrectly rejected

, and Project Z would be

(Click to select)

correctly accepted

incorrectly accepted

correctly rejected

incorrectly rejected

.