Question: A firm is considering a project that will generate perpertual after-tax cash flows of 25,000 per year beginning next year. The project has the same

A firm is considering a project that will generate perpertual after-tax cash flows of 25,000 per year beginning next year. The project has the same risk as the firm's overall operations. Equity cost 15%and debt cost 6% on an after-tax basis. The firm's D/E ratio is 1.2. What is the most the firm can pay for the project and still earn its required return?

a) 212,250

b)247,770

c)276,500

d)366,250

e)412,750

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