Question: do I put the answer In millions or just 32?? Leblanc, Incorporated, is considering a project that will result in initial aftertax cash savings of

do I put the answer In millions or just 32??

Leblanc, Incorporated, is considering a project that will result in initial aftertax cash savings of $3.1 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .55, a cost of equity of 11 percent, and an aftertax cost of debt of 5.1 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. What is the maximum initial cost the company would be willing to pay for the project? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Mommcost 3 Z

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