Consider a project of the Smeal & Skinner Co. with the following characteristics: Sales: $1,000,000 per year for the indefinite future Cash costs (including depreciation): 72% of sales Initial investment: $950,000 Corporate Tax Rate: 34% R0 = 20%, where R0 is the cost of capital for a project of an all-equity firm RB = 10% Target debt-to-value ratio = 0.25 To maintain the sales of $1,000,000 per year forever, the company has to incur yearly capital expenditures that equal its depreciation expenses. Use the WACC and APV methods to evaluate the project