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What is the expected return on the project using capm

Problem:

The market capitalization for X Corporation is $10 billion.
The estimated beta for its new project is 1.25
The treasury bill rate is 5%
The project's IRR is 14%
The expected rate of return on the S&P 500 is 13%.

What is the expected return on the project using CAPM?

(Assume no taxes)

A) 13%
B) 14.6%
C) 15%
D) 16.25%
E) 18%
F) 21.25%

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