Question No.5: 1S ABC company considering manufacturing special drill bits and other equipment for oil rigs. Over the last five years, the median average beta for companies in the same industry has been 1.28. The staff believes that 18 percent is a reasonable estimate of the average return on stocks for the foreseeable future and that the risk-free rate will be around 12 percent. In financing projects, ABC company uses 35 percent debt and 65 percent equity. The after-tax cost of debt is 8 percent. Based on this information, determine a required rate of return for the project, using the CAPM approach