Pink, Inc., is considering a project that will result in initial aftertax cash savings of $4.1 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of .55, a cost of equity of 11.7 percent, and an aftertax cost of debt of 4.9 percent. The cost-saving proposal is somewhat riskier than the usual projects the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects. Under what circumstances should the company take on the project?