You've been asked to determine the profit or loss on a potential project. It will cost $59,200,925, it will increase net income by $19,165,094 the first year, $28,738,234 the second year, $12,126,546 the third year, $10,250,614 the fourth year and $10,560,306 the fifth year. Your company just paid a dividend of $3.78, they plan to increase the dividend by 9.4% next year, by 8.2% in two years and then 3.0% each year forever after that. Expected return for their stock is 7.1%. The company has a beta of 1.8 the return on the market is 12.1% and the risk free rate is 3.2%. They have 6,688,308 shares outstanding. The company also has 196,150, $1000.00 face value, 15 year, semi annual bonds issued 9 years ago. The bond has a coupon of 8.0%. Current market rates are 6.3%. It also has 65,344 shares of preferred stock. Preferred stock pays a dividend of $6.2 and is currently selling for $118. The company's before tax cost of debt is 7.1% and tax rate is 26%