Twinkle Design Bhd (Twinkle) is an interior designer company and currently is planning to embark into manufacturing miniature building replicas. Total capital of Twinkle is RM2,500,000. 20% of the capital is from the issuance of Bonds. The beta value of this company is 1.2. After-tax cost of debt for this company is 8%. The board of directors of Twinkle will approve this project if the cost of the project does not exceed the expected return from the project, which is estimated at 17%. MiniCas Bhd has been identified as the proxy company with equity beta value of 1.5. A quarter of MiniCas capital comprises of debts, valued at RM500,000. The rate of return of a risk-free asset is expected to be 5%. The average return on the market is 12%, while the market risk premium is 7%. The corporate tax rate is 25%. Required: Advise the board of directors whether Twinkle should approve or reject this project. (Support your answer with calculation.)