over ARV Gemini Inc. an all, equity firm, is considering a $1.9 million investment that will be depreciated according to the straight-line method its four-year life. The project is expected to genero te earnings before taxes and depreciation of $685.000 per year for four years. The investment will not chonge the risk level of the firm. The company can obtain a four-year, 9,5 percent loan to finance the project from a locol bank. All principal will be repoid in one bolloon payment at the end of the fourth year. The bonk will chorge the firm $25.000 flotation fees, which will be amortized over the four-year life of the loan. If the compony financed the project entirely with equity The the firm's cost of capital would be 13 percent. corporate 30 percent. using the adjusted present' value method, determine whether the company should undertake the project. tox rate is