The Rare Find Co. has the following information:

Debt outstanding: $550 million

The before-tax cost of debt: 4%

Market cap: $1,300 million

Cost of common stock: 9%

Tax rate: 21%

Rare Find is evaluating a project with the following information:

Over the next five years, EBIT will equal 30 million each year

An investment of $50 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 $100 million depreciated using straight-line to zero over the project's life, with no salvage value.

The project requires an additional 2% risk premium above the firm's WACC.

Calculate the risk-adjusted WACC for the firm. (Enter percentages as decimals and round to 4 decimals)

Calculate the operating cash flows for the first year of the project. (Enter the full value, e.g. 5 million as 5,000,000)