Intro Your company is evaluating two projects and has collected the following information: Project B 7% Expected return (IRR) Project A 12% Same as existing business Risk Same as existing business Equity Long-term debt Suggested source of financing After-tax cost of financing 13% 5% The company currently has a capital structure consisting of 50% equity and 50% long-term debt. Part 1 18 Attempt 1/2 for 8 pts. Without doing any calculations, what should the company do and why? O Accept only project B, since its cost of financing is less than project A's Reject both projects, since their expected returns are too low O Accept only project B, since its expected return is greater than its cost of financing Accept only project A, since its expected return is greater than project B's O Accept both projects, since they are not riskier than the existing business O Look for a better reason to make a decision Submit Part 2 18 | Attempt 1/10 for 8 pts. What is the firm's overall (after-tax) cost of capital? 3+ decimals Submit Part 3 Attempt 1/2 for 8 pts. What should the firm do? Accept project B and reject project A Accept both projects Accept project A and reject project B Reject both projects Something else Submit