Project Evaluation - Using CAPM

Data:
Company: Sportball Plc
Products :Footballs and basketballs
Capital to invest :£ 100.000
Project 1: Manufacture Shoes
Project 2:Manufacture Shirts
ProjectRevenues
1st Year2nd Year3rd Year
Shoes £ 80,000 £ 75,000 £ 25,000
Shirts £ 60,000 £ 50,000 £ 50,000
Rate on a Gov Bond(The risk-free rate):5%
FTSE 100 (Expected rate of the market):8%
Sportball's β:0.90
Shoes Leader's β:0.95
Shirts Leader's β:1.1
a)Which project should Sportball plc choose?
In order to be able to decide anyone of the projects,…