(LO5) Both Enbridge Inc., a large natural gas user, and Canadian Natural Resources Ltd., a major natural gas producer, are thinking of investing in natural gas wells near Edmonton. Both are all-equity financed companies. Enbridge Inc. and Canadian Natural Resources Ltd. are looking at identical projects. Theyve analyzed their respective investments, which would involve a negative cash flow now and positive expected cash flows in the future. These cash flows would be the same for both firms. No debt would be used to finance the projects. Both companies estimate that their project would have a net present value of $1 million at an 18% discount rate and a $1.1 million NPV at a 22% discount rate. Enbridge Inc. has a beta of 1.25, whereas Canadian Natural Resources Ltd. has a beta of .75. The expected risk premium on the market is 8%, and risk-free bonds are yielding 12%. Should either company proceed? Should both? Explain.