Smith Inc. is considering a project that has a different risk than their normal operations. Smith inc. has a tax rate = 36%, a beta = 3.5 and before tax of cost debt = 6%. This new project will be financed using a D/E ratio = 1.7. A pure-play firm has been identified that has a beta = 1.2; D/E ratio = 1 and tax rate = 30%. Calculate the estimated beta for this project.