4. NTS Inc. is investing in a new project that will generate expected cash flows of $10 starting in one year (t=1), which will grow at a rate of 5% through year t=7. After that, these cash flows are expected to grow at 1% per year and continue in perpetuity. Upfront costs today (t=0) are $90. NTS plans to maintain a constant debt-to-equity ratio of 0.9 and faces a tax rate of 30%. NTS has an equity beta of 1.1 and debt cost of capital of 3%. Assume a market risk premium of 6% and a risk-free rate of 2%. Use the WACC approach to value the project including the tax benefits of debt.