Scanlin Inc is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the first year, and these savingds will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .80, a cost of equity of 11 percent, and an aftertax cost of debt of 4.6 percent. The cost savings proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. Under what circumstances should the company take on the project?