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Assume that Johnson Oil, a large user of natural gas, and Christie Hot Air Inc., a major producer of natural gas, have no debt in their capital structures. They are each considering an investment in natural gas wells and are evaluating the NPV of their respective investments. The projects have identical cash flows (including initial investment and expected future cash flows), and the projects would be funded entirely with equity. Each of the companies calculates that the NPV of the project would be $1 million at an opportunity cost of capital of 5.4%, and -$1.1 million if the opportunity cost is 8%. Johnson Oil has a beta of 1.2, and Christie Hot Air has a beta of 0.68. The E(Rm) is 7% and the risk-free rate is 2%. What would you recommend to Johnson and Christie about whether they should proceed with the proposed investment? Explain and make sure to think about the type of project.