Didgi is an entertainment company with multiple divisions and a cost of capital of 14.6 percent. Records and co is a specialist audio firm with a cost of capital of 12.8 percent. Both firms are considering an audio book project. The project will require an initial investment of $1.4 million and is expected to return 13.7%. Should Didgi and/or Records undertake the audio books project?

• only Records should undertake the project

• only Didgi should undertake the project

• Both Didgi and Records should undertake the project

• Neither only Didgi nor Records should undertake the project