A company with a WACC = 9% and beta 1.1, is considering investing in a new project that offers IRR=11% and has a beta 1.3. Should the firm invest in the new project?

Answer Choices:

• I do not know, I need to calculate the Adjusted WACC which should be less than 9%
• I do not know, I need to calculate the Adjusted WACC which should be greater than 9%
• No, because the project's beta > the firm's beta
• Yes, because the project's IRR > the firm's WACC