Two equity firms X and are considering the same new project that has a beta of 0.8. The project has an IRR of 9%. Firm X beta - 0.6 and Firm Y has a beta - 1.2. The risk-free rate is 3% and the expected return on the market is 9%.
Can you help me by providing guidance on how I should determine whether either firm X and firm y take the project and why?