Ariana, Incorporated, is considering a project that will result in initial aftertax cash savings of $5.4 million at the end of the first year, and these savings will grow at a rate of 3 percent per year, indefinitely. The firm has a target debt-equity ratio of .53, a cost of equity of 13.3 percent, and an aftertax cost of debt of 6.7 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects.

Calculate the required return for the project.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the maximum cost the company would be willing to pay for this project?

Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.