Answe please

No debt would be used to finance the projects. Both companies estimate that their -S1.1 million NPV at a 22% discount rate. Enbridge Inc. has a beta of 1.25, whereas equity is less than the cost of debt? 9. (L05) Both Enbridge Inc., a large natural gas user, and Canadian Natural Resources Ltd., a major natural gas producer, are thinking of investing in natural gas wells near Edmonton. Both are all-equity financed companies. Enbridge Inc. and Canadian Natural Resources Ltd. are looking at identical projects. They've analyzed their respective investments, which would involve a negative cash flow now and positive expected cash flows in the future. These cash flows would be the same for both firms. project would have a net present value of $1 million at an 18% discount rate and a Canadian Natural Resources Ltd. has a beta of 75. The expected risk premium on the market is 8%, and risk-free bonds are yielding 12%. Should either company proceed? Should both? Explain