Coffee Planet Inc considers an expansion project. It currently has $100$ million

outstanding shares trading at $$20$ per share. Equity has an estimated beta of $1\mathrm{.}6.$ The

risk$-$free rate is $4\%,$ while the market risk premium is $5\%.$ It also has $2,000,000$

outstanding bonds with $$1,000$ par. The bonds are zero$-$coupon bond with ten years to

maturity and are priced at $45\mathrm{.}6386\%$ of par $($for yield, assume annual compounding$).$ The

corporate tax rate is $30\%.$ The project will require an investment if $$100$ million and will

produce a net after tax cash flow of $$17$ million per year for $10$ years. Should Coffee

Planet accept the project?