2. A A company is evaluating the possibility of doing a project, they want to finance it with an equal mix of debt and equity, the total investment is to be $10 million, $5 million from debt, $5 million from equity. The beta of the company is 1.6 free rate is 0.07%. The bonds issued by the company have a coupon of45%, 5 years to maturity, face value $1,000, and sold for $1,100. Tax is 35%. , the return on the SP500 is 3.1% and the risk The cash flows for the project are: Year Cash flow in millions 2 Decide if the company should do this project