Risk Free Rate Beta of company's stock Risk Premium on average stock 3.7% 1.4 5.6% Cash Flows -91 0 12 16 15 14 11 13 15 17 16 16 14 28 Using the IRR approach to capital budgeting, should the firm adopt this project? Hint: you will need to apply the CAPM to estimate the firm's cost of equity capital. Please compare the IRR to the cost of capital: IRR Cost of Capital (Required Return) Difference (IRR - Cost of Capital) #1 What is that difference? A Between-10.0% and -4.0% B Between -4.0% and 0.0% C Between 0.0% and 4.0% D Between 4.0% and 10.0%