Consider a project to produce solar water heaters. It requires a $ 1,000 million investment and offers an after-tax cash flow of $100 million per year for infinite life. The opportunity cost of capital for an all-equity firm is % 10 (R0), which reflects the projects business risk. Now imagine that the firm intends to finance the project with $ 600 million of permanent debt at % 8 (to repurchase the equity so firm value does not change) firm's tax rate is 40 %

I) Based on the information provided above please consider whether this project can be accepted using adjusted present value (APV), flow to equity (FTE) and weighted average cost of capital (WACC)