On-line Text Co. has four new text publishing products that it must decide on publishing to expand its services. The firm's WACC has been 17%. The projects are of equal risk, Beta of 1.6. The risk-free rate is 7% and the market rate is expected to be 12%. The projects expected returns are as follows:
Project W = 14%
Project X = 18%
Project Y = 17%
Project Z = 15%
What project (s) should be clearly rejected?
D. Reject Z
B. Reject Y and Z
A. Reject X and Y
C. Reject W
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