Gavin Corporation has equity with a market value of $10.9 million and the market value of debt is $3.60 million. The book value of equity is $12,000,000, and the book value of debt is $10,000,000. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.7 percent. The new project will cost $2.22 million today and provide annual cash flows of $581,000 for the next 6 years. The company's cost of equity is 11.11 percent and the pretax cost of debt is 4.89 percent. The tax rate is 35 percent. What do you recommend? Why?