AP, Inc. is considering a project that will result in initial aftertax cash savings of $600,000 at the end of the first year, and these savings will grow at a rate of 3.5 percent per year indefinitely. The firm has a target debt-equity ratio of .60, a cost of equity of 9 percent and an aftertax cost of debt of 4 percent. The cost-saving proposal is assessed to have the same risk of a typical project. What is the maximum the company should pay for this project?

		$16,551,724
		$22,487,567
		$38,998,449
		$9,847,000
		$12,874,857