You and your friends have decided to examine the potential of starting a series of restaurants in and around college campuses in Boston that cater exclusively to students. Assume that (together) you have $120,000 (equity) for this project which requires an initial investment of $200,000. The remaining amount of $ 80,000 can be raised through issuing bonds. You are given the following additional information about the project.

Year	Free Cash Flow
1	$ 20,000
2	$ 40,000
3	$ 60,000
4	$ 80,000
5	$ 100,000
Other Information
Beta based on similar businesses	2.00
Risk Free Rate	4.50% / year
Market Risk Premium	8.00% / year
Price per Bond	$ 1,050
Face Value of Bonds	$ 1,000
Coupon Rate on Bonds	8.50 %
Coupons Paid	Monthly
Maturity of Bonds	5 years
Tax rate for firm	30%

Will you accept or reject this project? Why?