Swizer Industries has two separate divisions. Division X has less risk so its projects are assigned a discount rate equal to the firm's WACC minus 0.75 percent. Division Y has more risk and its projects are assigned a rate equal to the firm's WACC plus 1 percent. The company has a debt-equity ratio of 0.40 and a tax rate of 34 percent. The cost of equity is 15.4 percent and the after-tax cost of debt is 5.4 percent. Presently, each division is considering a new project. Division Y's project provides a return of 12.9 percent while Division X's project is expected to earn 11.5 percent. Which project(s), if any, should the company accept? Accept X and reject Y be Reject X and accept Y Accept both X and Y Reject both X and Y