Petco is evaluating a new project to deliver home pet care services. They estimate that the project will cost $42M immediately to launch and would deliver $580,000 a quarter in project cash flows for 27 years with the first cash flow realized one quarter after initiation. Suppose Petcos total market value of equity is $13M and the total market value of their debt is $7M. Find the NPV of the project. Petco has an equity beta of 1.1, the expected market return is 15.66%, the risk-free rate is 3.99%, and the YTM on their long-term debt is 16.22%. Petcos tax rate is 39.23%. Find the NPV of the project.

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