A company is considering making a $100M investment in a new product line. Assume that it will finance 60% of this investment with off-balance sheet financing at a debt cost of 5% (beta of debt is 0.3). The project is expected to generate project free cash flows of $10M each year (assume into perpetuity) and an unlevered beta of comparable firms/projects is 1.2. The firm is subject to a 35% corporate tax rate and you can assume the risk-free rate and market risk premium are 4% and 5%, respectively. Find the market value of the equity in the project and the project-specific WACC. What is the implication of the market value of equity?