Ochs, Inc., is considering a project that will result in initial after$-$tax cash savings of $$1\mathrm{.}85$ million at the end of the first year, and these savings will grow at a rate of $3$ percent per year indefinitely. The company has a target debt$-$equity ratio of $\mathrm{.}65,$ a cost of equity of $11$ percent, and an after$-$tax cost of debt of $4\mathrm{.}3.$ percent. The cost$-$saving proposal is somewhat riskier than the usual projects 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. Under what circumstances should the company take on the project?