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Modern Miracles Movies (3M) is evaluating a project that has a beta coefficient equal to 1.5. The risk-free rate is 2.5 percent and the market

Modern Miracles Movies (3M) is evaluating a project that has a beta coefficient equal to 1.5. The risk-free rate is 2.5 percent and the market risk premium is 8 percent. The project, which has an initial investment outlay equal to $625,000, will generate $180,000 in after-tax operating cash flows for the next five years. Should 3M purchase the project?

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