Scanlin is considering a project that will result in initial after-tax cash savings of 2.7 million at the end of the first year, and these savings will grow at a rate of 4% per year indefinitely. The firm has a target debt-equity ratio of 0.90, a cost of equity of 13%, and an after-tax cost of debt of 4.8%. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2% to the cost of capital for such risky projects. Under what circumstances should the company take on the project?