Roger has a levered cost of equity of 0.24. He is thinking of investing in a project with upfront costs of $6 million, which pays $2 million per year for the next 5 years. He is going to borrow $1 million to offset the startup costs at a rate of 0.06. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

Correct Answer-1,612,876

I want to know the reason(solution)