ATR Enterprises is considering a new jewelry production center in Hyde Park, NY. The business plan states that the investment is projected to deliver a return of 14%. The firms corporate finance analyst collects data and shows the beta of similar investment projects at 1.55. If the risk free rate is 3% and the market risk premium is estimated at 8.5%, what is the hurdle rate for this project? Will the project be approved? If not, at what rate will management approve the project.