1. The National Business Machine Company is considering expanding into the automated bank teller business, a field considerably different from its own. In undertaking this project, it expects to raise $200 million of new equity and $50 million of new debt. The firm's before tax cost of debt is 8% and its corporate tax rate is 30%. It is known by the National Business Machine Company that the Automated Register Company produces only automated teller equipment and has a debt-to-equity ratio of .40, a beta coefficient of 1.3, and a corporate tax rate of 30%. a.) If the National Business Machine Company wishes to enter the automated bank teller business, what beta should it intend to employ? b.) If the risk-free rate is 4%, the expected market return is 10% and the expected internal rate of return for this project is 12%, should the National Business Machine Company expand into the automated bank teller business