Megas produces gyros and stuffed grape leaves. It has the following capital structure. Its debt is $200m and its equity is $300M. Its risk-free rate is 3%, while the expected return of the market is 10%, and its unlevered beta is 1. The corporate tax rate is .2, and the yield to maturity of its bonds is .05. Megas intends to invest $300 m into a gyro (shawarma) project wanting to become the biggest seller in the American continent. Thus, it expects to receive $75m operating free cash flow annually for 30 years on this investment. The depreciation is straight line for 30 years (based on the $300m investment) and the annual interest is $25 m.

For the grape leaves project, Megas will invest $210 million and receive $55m annually, in terms of operations free cash flow. Interest is $15 m and depreciation are $7 m per annum. Compute the value of Megas.