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5 . DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project

5. DigiFlix is a streaming service for home movies. It plans to issue debt to finance an upgrade to its IT infrastructure. The project will cost $30 million and debt issuance costs are 3% of the amount raised. The firm estimates that the upgrade will generate perpetual after-tax cash flows of $2 million/year beginning one year from today. If the appropriate discount rate is 5%, what is the NPV of this project?
A) $9.07 million
B) $9.1 million
C) $10 million
D) $9.3 million
E) $69.1 million

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