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Project X is an inventory-control system, with an IRR of 10.60% & a beta of 0.90. Incredible Corp. has two divisions: Mondo Group & Golden

Project X is an inventory-control system, with an IRR of 10.60% & a beta of 0.90. Incredible Corp. has two divisions: Mondo Group & Golden Group. Both groups are considering implementing Project X. Mondo Group makes health products and has an asset beta of 1.20. Golden Group is a mining operation with an asset beta of 0.70. The risk-free rate is 3.00%; the expected return on the market is 11.00%. Explain clearly and concisely whether each firm should take the project, being sure to justify your reasoning.

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