BEEFLY Industries has a new project available that requires an initial investment of $7 million. The project will provide unlevered cash flows of $700,000 per year for the next 15 years. The company will finance the project with a debt-to-value ratio of 0.35 . The company's bonds have a YTM of 8 percent. The companies with operations comparable to this project have unlevered betas of 1.25,1.18,1.40, and 1.35 . The risk-free rate is 4 percent, and the market risk premium is 8 percent. The company has a tax rate of 30 percent. (a) What is the NPV of this project? (b) If the NPV is equal to the Net Income and the Captial Budget is $200,000 what is he Payout Ratio