Hankins, Inc., is considering a project that will result in initial aftertax cash savings of $6.6 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debtequity ratio of .65, a cost of equity of 13 percent, and an aftertax cost of debt of 6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects.

1. Calculate the WACC. 2. What is the maximum cost the company would be willing to pay for this project?

**I already figured out the correct WACC 10.24% but I cannot seem to get the correct answer for the second part of the question. I got 71428571.43 but it tells me that that answer is incorrect. Please help!