a$)$ Raptors Tech has $$950,000$ of debt on its balance sheet and pays corporate taxes at the $30\%$ rate.

The CEO of Raptors Tech faces an investment opportunity that requires an initial investment of

$$50,000$ in new machinery and is expected to generate annual cash flows $($before tax$)$ of $$32,000$

for two years, starting in the first year. At the end of the second year, Raptors will be able to

recover a salvage value of $$10,000$ by selling the project's machinery. The unlevered cost of capital

is $10\%.$

What is the value of the project if Raptors Tech decides to issue $$30,000$ in bonds at an interest

rate of $9\%$ to finance the project?