Question: Im having a problem with this question can someone please help me solve it Roger has a levered cost of equity of 0.13. He is

Im having a problem with this question can someone please help me solve it

Roger has a levered cost of equity of 0.13. He is thinking of investing in a project with upfront costs of $9 million, which pays $1 million per year for the next 7 years. He is going to borrow $2 million to offset the startup costs at a rate of 0.07. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?

I did

Initial investment =-9000000+2000000=-7000000

Cash flow each year from year 1 to year 4 = (1000000-2000000*

0.07)*1-0.30)=602000

Cash flow of year 5= 602000-2000000=-1398000

how to computed the NPV?

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