The firm also has the ability to undertake a project sponsored by the US government. The cost of the project is $2,000 and the guaranteed return is $2,500. The firm has a required rate of return of 5%. If the decision is made by the equity holders, should the firm undertake the project? Why or why not? 

Assets	Book Value	Market Value	Liabilities and Equity	Book Value	Market Value
Cash	$1,000	$1,000	Long-term Bonds	$1,500	$1,500
Fixed Assets	2,000	500	Equity	1,500	-
Total	$3,000	$1,500	Total	$3,000	$1,500