A firm is considering a project that will result in initial after$-$tax cash savings of $$5$ million at the end of the first year. These savings will grow at the rate of $5$ percent per year. The firm has a debt equity ratio of $\mathrm{.}5,$ a cost of equity of $29\mathrm{.}2$ percent, and a cost of debt of $10$ percent. The cost$-$saving proposal is closely related to the fi m$\text{'}$s core business, so it is viewed as having the same risk as the overall fi rm$.$ Should the fi rm take on the project? Assuming a $34$ percent tax rate, the fi mm should take on this project if it costs less than $$30$ million.