Question: Logic Legal Leverage (LLL) is evaluating a project that has a beta coefficient equal to 1.3. The risk- free rate is 3 percent and the

Logic Legal Leverage (LLL) is evaluating a project that has a beta coefficient equal to 1.3. The risk- free rate is 3 percent and the market risk pre- mium is 6 percent. The project, which requires an investment of $405,000, will generate $165,000 after-tax operating cash flows for the next three years. Should LLL purchase the project? Excuse me, but I am stumped on this and the answer listed feels incorrect to me. Any thoughts?

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