Intro Your company is evaluating two projects and has collected the following information: The company currently has a capital structure consisting of 40% equity and 60% long-term debt. Part 1 Without doing any calculations, what should the company do and why? Accept both projects, since they are not riskier than the existing business Accept only project B, since its cost of financing is less than project A's Look for a better reason to make a decision 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 Reject both projects, since their expected returns are too low Try again What is the firm's overall (after-tax) cost of capital? Part 3 What should the firm do? Accept project B and reject project A Reject both projects Accept both projects Accept project A and reject project B Something else