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You have been asked to review a potential project for your company. The project will cost $ 3 6 , 0 0 0 , 0

You have been asked to review a potential project for your company. The project will cost $36,000,000 and should increase net income by $8,000,000 for the next six years. The company's bond is currently selling for 92% of par. The bond is a semi annual, 30 year bond issued 11 years ago with a face value of $1000.00 with a coupon of 4%. There were 95,000 bonds issued. The company's corporate tax rate is 32%. The company has a beta of 1.15. You've calculated the return of the market to be 11.5% and the risk free rate is currently 4.25%. The company stock is selling for $25.50 and there are 10,000,000 shares outstanding. What is the present value of the profit or loss if the company implements the project?

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