Here is some information about Wolverine Sucks Inc.:

Beta of its common stock = 2.0

Treasury bill rate = 4%

Market risk premium = 7%

Yield to maturity on its bond = 6%

Book value of its common stock = $300 million

Market value of its common stock = $900 million

Book Value of its bond = $500 million

Market value of its bond = $800 million

Corporate tax rate = 34%

If the company considers a normal project whose risk is about the same as the companys risk with an internal rate of return of 12%, should it accept the project? Why or why not?