$10-20$ Modern Miracles Movies $(3$M$)$ is evaluating a project that has a beta coefficient

equal to $1\mathrm{.}5.$ The risk$-$free rate is $2\mathrm{.}5$ percent and the market risk premium is $8$ percent. The

project, which has an initial investment outlay equal to $$625,000,$ will generate $$180,000$

in after$-$tax operating cash flows for the next five years. Should $3$M purchase the project?

$($LO $10-3)$