Salmon Co. is thinking to raise $100,000,000 for a new project. In order to preserve the ownership percentages of current stock holders, the management is thinking to raise new equity through a right issue and to fund the whole project through new equity. There are 200,000,000 outstanding shares and the market price of each share of stock is 12$. The issue price of the new shares of stock will be $8.5 for each new share. The new project is expected to produce an after-tax cash ow of $23,000,000 every year for 8 years, and at the end of its life (that is, after 8 years) the project's assets can be sold for an after-tax cash amount of $5,000,000. The company currently (that is, before starting the new project) holds a $300,000,000 in debt and plans to keep this amount constant. The levered return on equity is 9% while the required return on debt is 3% and the corporate tax rate is 26%. What is the NPV of the new project?

ans: [32,345,114.95]

Please explain the steps