A packaging materials manufacturer is considering a project that has an estimated RAROC of 12%. Suppose that the risk-free rate is 4% per year, the expected market rate of return is 10% per year, and the company's equity beta is 1.6. The manufacturer uses the adjusted RAROC metric as the criterion to decide whether or not to accept the project. Which of the following correctly describes the decision the company should make and the rationale for making that decision?