Webster Corp. has a total market value of $6.6 million and has outstanding debt of $4.4 million. Webster Corp. actively manages its equity and debt to maintain a constant debt to equity ratio. The current expected annual rate of return on its debt is 6%, while the expected annual return on its equity is 13.5%. Webster Inc. is considering an investment that will improve the energy efficiency of its operations, and thus permanently reduce its (tax deductible) operating costs by $95,000 per year, with the first reduction beginning one year hence. The initial cost of the investment is $1.14 million, which can be immediately expensed as a current cost. The corporate tax rate is 21%. (a) What is the net of tax cost of the investment to Webster? Since Webster is expensing the investment, what offsetting loss does it incur? Why would it nevertheless prefer the expensing option? (b) What are the annual after-tax cost savings from the investment? (c) Assuming that the corporate tax effects alone approximate the overall effects of debt, what is the NPV of the project evaluated using the WACC approach? (d) Assuming efficient capital markets, what would happen to the value of Webster equity upon announcement of the project