The firm wants to diversify with a new product line. The project requires an initial investment of $8,000,000 and will provide $3,000,000. in after-tax unlevered cash flows at the end of each year for 7 years. The projects unlevered cost of capital is 12%. Debt (bonds) of $4,000,000 will be issued Assume the debt has a 7year life, a yield of 5% and a coupon of 5%. The tax rate is 40. Find the value of the project using APV (adjusted present value) and FTE (flow to equity). Assume the tax shields are risk-free and the firm has a target debt ratio (debt value) of 65.