Project Specific Cost of Equity

Hi, This may sound a really silly query however I looked at it a couple of times but still could not spot the error and it made me think that the answer is wrong! :) I have a couple of more questions which I will be posting separately. Thanks. Anyway, here is my question: (I got the part question right - which was to calculate asset beta) The current risk-free rate of return is 4% and the average equity risk premium is 5%. Tax rate is 30%. Equity beta is 1.6. I calculated asset beta as 0.895 putting all the values in CAPM equation: 4% + 0.895 (5% -4%) = 4.89 However, solution is: 4% + (0.895 x 5%) =8.5 Please can you clarify? Thanks