Consider a one-year project which is expected to generate $230 million in free cash flow to equity at the end of the year of which $18 million will be distributed as a fully franked dividend at that time that is, $18 million of the $230 million in FCFE will be distributed as a dividend. The project is 100% owned by Australian resident taxpayers and the corporate tax rate is 40%. The expected return on the market portfolio next year (based on capital gains and dividends only) is 12% (consisting of 9% in capital gains and 3% in dividends which are fully franked) and the expected after-company-before-personal-tax return on the market portfolio next year is 13.5%. Based on the CAPM, the grossed-up cost of equity for the project is 19.5% per annum.

What is the equity value of the project today ?