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Assume that two companies are considering a new marketing project that requires the same initial investment...

Assume that two companies are considering a new marketing project that requires the same initial investment in both and will give the same financial benefits to both companies throughout the life of the project. In fact, the IRR is 10.50% for both of them. If these companies have the following capital asset pricing models (CAPM), which company will reject the project?

Company A

Company B

Risk-free Rate = 1%
Market Rate = 6%
Beta = 2

Risk-free Rate = 2%
Market Rate = 10%
Beta = 1
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