A firm is considering a project that will cost $100 Million. The project will produce unlevered

free cash flows of $7 million per year in perpetuity. The firms cost of debt is 6%, and their allequity

cost of capital is 16%. The project has risk similar to that of the operations of the firm,

and the target debt-to-value ratio is 0.3. The tax rate is 34%.

What is the NPV for the project using the WACC method?