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A project has an internal rate of return of 11.76 percent and a beta of 1.22. The market rate of return is 9.8 percent, the

A project has an internal rate of return of 11.76 percent and a beta of 1.22. The market rate of return is 9.8 percent, the tax rate is 35 percent, and the risk-free rate is 3.4 percent. Should this project be accepted according to the CAPM if the firm is all-equity financed? Why or why not?

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