Community Health Systems $($CHS$)$ is evaluating the feasibility of building a new

Ambulatory Surgery Center $($ASC$)$ in a geographic area not currently serviced by the

company. Analysts for the company's strategic planning committee estimate a market

beta of $1\mathrm{.}1$ for this project, which is somewhat higher than the average $0\mathrm{.}8$ market beta

for the company's current project portfolio. Financial forecasts for the ASC project an

expected rate of return on CHS equity of $20\%.$ If the current risk free rate is $7\%$ and the

required market rate of return is $12\%,$ is the ASC project financially acceptable to $CH{S}^{\text{'}}$

shareholders? Why or why not?