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The Rare Find Co. has the following information: Debt outstanding: $400 million Before-tax cost of debt: 5% Market cap: $7,500 million Cost of common stock:

The Rare Find Co. has the following information:

Debt outstanding: $400 million

Before-tax cost of debt: 5%

Market cap: $7,500 million

Cost of common stock: 8%

Tax rate: 21%

Rare Find is evaluating a project with the following information:

Over the next five years EBIT will equal: 20 million each year.

An investment of $25 million is required in net working capital at the beginning of the project, which will be recovered at the end of the project.

The cost of the equipment will be $90 million depreciated using straight-line to zero over the project's life, with no salvage value.

The project requires an additional 1% risk premium above the firms WACC.

Calculate the net present value for the project. (Enter the full number, e.g. 5,000,000)

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