ECR Corporation, a maker of sports accessories, is considering investing in a new project that manufactures tennis racquets. You have received the following information relating to the project: • The project will run for four years; • Annual sales are expected to be $20 million in the first year, and will grow at a rate of 10% until the end of the life of the project; • Manufacturing costs and operating expenses are expected to be $12 million and $4 million per year, respectively; • There will be upfront marketing and R&D expenses of $5 million; • Initial equipment costs of $10 million. The equipment will be depreciated via the straight-line method to a book value of zero over the four years' life. However, at the end of the project, they will receive $800,000 for the equipment; • Assume that the project has the same risk as the firm. ECR Corporation has $30 million in cash, $300 million in equity, and $330 million in debt. ECR's debt cost of capital is 7%, and the cost of equity capital is 12%; • ECR Corp pays a corporate tax rate of 35%; • In addition, you have been told that no net