What is the cost of capital (RA) that you should use to value Greenerton?

The CEO of the ESG Corp has hired you to advise her and her company about whether or not to acquire Greenerton, a privately held company with no outstanding debt. If ESG Corp moves forward with the acquisition, it will finance the deal with equity and no debt. You have produced the following projections (in \$ million) for Greenerton's revenues, costs of goods sold, and depreciation over the next two years (assume that today is 2020). Today (in 2020), Greenerton's net working capital (NWC) is \$26 million. For 2021 and 2022, you estimate that Greenerton's net working capital will be 10% of revenues. Because neither ESG or Greenerton are publicly traded, you have gathered data about BlueSky, a publicly traded firm whose operations are similar in risk to Greenerton's. BlueSky has 200,000 shares outstanding, and they are currently trading at $42 a share. It also has $2.8 million in debt. BlueSky has an equity beta (E) of 1.8 , and the firm borrows at a rate of 5.6%. The corporate tax rate is 40%, the market risk premium is 8%, and the risk-free rate is 4%