Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and is considering the following project:

The project will last $5\mathrm{.}00$ years with an annual cash flow of $$40\mathrm{.}00$ million. The project will require an initial investment of $$140\mathrm{.}00$ million

The firm must determine the cost of capital to evaluate the project. $($The project is within the firm$$s normal activities$)$

Ramblin Wreck, Inc. Financial Data:

STOCK DATA: BOND DATA:

Current Price Per Share $$28\mathrm{.}00$ Current Price Per Bond $$931\mathrm{.}00$

# of Shares $2\mathrm{.}00$ million # of bonds $20,000\mathrm{.}00$

Book Value $$50$ million Annual Coupon Rate $8\mathrm{.}00\%$

Face Value Per Bond $$1,000$

Maturity $10$ years

The risk free rate in the economy is currently $2\mathrm{.}00\%,$ while investors have a market risk premium of $6\mathrm{.}00\%.$ Ramblin Wreck, Inc. has a beta of $1\mathrm{.}42.$ The tax rate is $40\mathrm{.}00\%.$

What is the NPV of the project? $($express in millions, so $1000000$ would be $1\mathrm{.}00)$

Submit

Answer format: Currency: Round to: $2$ decimal places.