The Hartley Hotel Corporation is planning a major expansion. Hartley is financed 100 percent with equity and intends to maintain this capital structure after the expansion. Hartleys beta is 1.3. The expected market return is 12 percent, and the risk-free rate is 8 percent. If the expansion is expected to produce an internal rate of return of 11 percent, should Hartley make the investment? Round your answer to one decimal places.

Based on the cost of capital of %, Hartley -Select-shouldshould notItem 2 invest.