Laks & Co. is planning to acquire new fixed assets. The company needs to raise 120 million in new equity, and the new assets will be depreciated straight line over their life. Laks will not use any debt to fund the project. In order to raise new equity the lead underwriter charges a 9% fee on new equity issuance. The assets' life is 10 years and they will produce yearly EBITDA (Earnings Before Interests Taxes Depreciation and Amortization) of $24.5 million, the required return on equity is 8.50% and the tax rate is 27%. What is the NPV of the project for equity holders?

Ans is $6.74 million

can you explain the steps in detail?