5. (10 points) DongHwa Co. is considering a project that will create initial after-tax cash savings of $1.85 million at the end of the first year, and these savings will grow at a rate of 3% per year indefinitely. DongHwa has a debt-to-equity ratio of 0.65, a cost of equity of 11%, and an after-tax cost of debt of 4.3%. The cost-saving proposal is riskier than the firm's average risk and requires 1% more than the WACC as the required return. In what circumstances should DongHwa take on this project?