Dorman Industries has a new project available that requires an initial investment of $5.2 million. The project will provide unlevered cash flows of $745,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .45. The companys bonds have a YTM of 6.7 percent. The companies with operations comparable to this project have unlevered betas of 1.22, 1.15, 1.37, and 1.32. The risk-free rate is 3.7 percent, and the market risk premium is 6.9 percent. The company has a tax rate of 35 percent.