The Clinton Saxophone Emporium is planning on opening a new mega store. Management expects sales to be $4.5 million (in perpetuity). They estimate that total fixed and variable costs account for 65% of sales. The corporate tax rate is 30%. The discount rate on unlevered equity is 12.5%. Management is considering financing the initial investment of $3 million with internal equity. (A) What would the unlevered NPV of this project be? B) The CFO has decided that the firm might prefer to finance $2 million of the initial investment with a bond issuance, with a target debt-to-equity ratio of 0.3. The yield on a bond with the same credit risk as the firm is 7.5% and the firm would issue perpetual debt with annual coupons. Evaluate the project under with this financing using the Flow-to-Equity method