BB Inc. hired you as a consultant to help decided on an expansion project. The project will produce $$8$ million of revenue per year for seven years. Cash expenses will be $$5$ million and depreciation expenses will be $$2$ million per year. The project will increase net working capital by $$60,000$ and fixed capital assets by $$100,000$ per year. The firm has a market value of outstanding debt of $$11,050,000$ and $$25,000,000$ in equity. The before$-$tax cost of debt is $6$ percent, and the tax rate is $27$ percent. The cost of equity is $12\%.$

What is the payback period for this project? Based on this when would the project be acceptable? Explain. Show all work.