Assume that the market value of debt $75 mm. The debt is priced at par and its coupon rate is 12%. The market value of common stock is $125 mm. The coupon rate of debt is 6%. The beta of the common stock is 1.3. The current risk-free rate is 2% and the expected market risk premium is 8%. The corporate tax rate is 25%. Assume you are considering the following project. The initial investment is $15 million. In addition, the firm will make a $5 mm investment in working capital at time zero and recoup that investment at time 10. Sales are expected to be $7 million per year until year 10. Costs are 60% of sales. The salvage value of the equipment at time 10 is zero. Determine the NPV and IRR of the project.\ \ NPV = $2.39 mm and therefore accept the project\ NPV = $2.61 mm and therefore accept the project\ NPV = -2.39 mm and therefore reject the project\ None of the above