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Steel Corp. has an asset beta of 1.40 . The risk-free rate in the marketplace is 3.0% and the expected return on the market is

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Steel Corp. has an asset beta of 1.40 . The risk-free rate in the marketplace is 3.0% and the expected return on "the market" is 8.0%. Thus, as per the Capital Asset Pricing Model [CAPM], the appropriate required return on Steel Corp.'s assets (i.e., the enteprise (i.e., current assets, current liabilities, and long-term assets)) is 10.0\%. Steel Corp. is evaluating a new project, to make battery chargers. The project requires an initial outlay of $900,000 and offers projected future, end-of-year cash flows of $240,000 for years 1 through 6 . negative number, just put a minus in front of your entry.] Using the NPV decision rule, would you accept or reject the project? Answer: [Enter just one word: accept or reject.] II. Further analysis indicates that the charger project has a beta of 2.60. In other words, this new potential project is riskier/safer [pick one] than the overall Steel Corp. enterprise that currently exists. Answer: Use this project-specific beta and the CAPM to determine the project-specific required return. In turn, use this required return to calculating the charger project's NPV. Answer: $ [Round your answer to the nearest dollar. For a negative number, just put a minus in front of your entry.] Using this NPV answer, does the NPV rule indicate that you should accept or reject the charger project? III. In term's of the firm's objective of maximizing shareholder wealth, what should Steel Corp. do with this battery-charger project (accept or reject)

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