13. Indosoftware Company has cost of equity of 20 per cent, cost of debt of 10 per cent and debt-to- total assets ratio of 20 per cent. The company is considering an expansion project. The project will need a cash outlay of 80 crore. It is expected to generate annual EBDIT of 20 crore for 8 years. The project will require 1 crore each year for net working capital and capital expenditure IndoSoftware will be able to borrow 40 per cent of the project's cost from a financial institution. The interest rate is 10 per cent p.a., and the loan amount will be repaid in equal annual instalments over eight years. The corporate tax rate is 34 per cent. Assume straight-line depreciation for computing taxes and zero terminal value of the project. Should the company accept the project?