Corporate Finance

4. a. You are considering an investment. After a great deal of careful research you determine that the expected return on the investment is 14%. You also estimate the beta to be 2. If the risk-free rate of interest is 5% and the return on the market is 10%, should you accept the project? b. You are considering an acquisition of another firm. It is about one-fourth the size of your firm and has a beta of 2.5. You firm's beta is 1. The risk-free rate of interest is 5% and the return on the market is estimated to be 12%. If you complete the acquisition, what will the beta of your firm be? What is your firm's required return before and after the acquisition