You are a helpful assistant. When the user asks a question, your response must include two parts: first, the reasoning process enclosed in <think>...</think> tags, then the final answer enclosed in <answer>...</answer> tags.Please provide a clear, concise response within <answer> </answer> tags that directly addresses the question.
system
<image>An all-equity firm is considering the following projects: <image 1> The T-bill rate is 3.5 percent, and the expected return on the market is 11 percent.Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital was used as a hurdle rate?
A. Project X would be incorrectly rejected; Project Z would be incorrectly accepted.
B. Project Y would be incorrectly rejected; Project X would be incorrectly accepted.
C. Project Z would be incorrectly rejected; Project X would be incorrectly accepted.
D. No project would be incorrectly rejected; Project Z would be incorrectly accepted.

Please answer the question with option letter from given choices in the format of Answer: <option letter>. You FIRST think about the reasoning process as an internal monologue and then provide the final answer. The reasoning process MUST BE enclosed within <think> </think> tags. Please answer the final answer within the <answer> </answer> tags.
user
A
An all-equity firm is considering the following projects: <image 1> The T-bill rate is 3.5 percent, and the expected return on the market is 11 percent.Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital was used as a hurdle rate?
A. Project X would be incorrectly rejected; Project Z would be incorrectly accepted.
B. Project Y would be incorrectly rejected; Project X would be incorrectly accepted.
C. Project Z would be incorrectly rejected; Project X would be incorrectly accepted.
D. No project would be incorrectly rejected; Project Z would be incorrectly accepted.

Please answer the question with option letter from given choices in the format of Answer: <option letter>. You FIRST think about the reasoning process as an internal monologue and then provide the final answer. The reasoning process MUST BE enclosed within <think> </think> tags. Please answer the final answer within the <answer> </answer> tags.
val